In recent months, a remarkable trend has emerged in the cryptocurrency landscape, particularly concerning high-net-worth investors and their increasing interest in Bitcoin. Xapo Bank, a Gibraltar-based private bank and Bitcoin custodian, has reported a significant surge in Bitcoin trading volumes during the first quarter, which can be attributed to affluent clients capitalizing on market turbulence.
Xapo Bank’s latest data reveals that trading volume grew by 14.2% in Q1 compared to the preceding quarter. Despite the challenging market conditions—which saw Bitcoin experiencing its worst start to a year since 2018—the bank’s wealthy members were actively buying Bitcoin, demonstrating their commitment to the digital asset’s long-term potential.
As Bitcoin prices fluctuated, hitting a quarterly low, many investors viewed this as an opportune moment to strengthen their portfolios. Xapo Bank’s analysis shows that the recent decline has not dissuaded their high-net-worth clients, who continue to exhibit confidence in the cryptocurrency’s future.
Furthermore, Xapo Bank has made notable strides in the financial sector, becoming the first licensed institution in the UK to offer interest-bearing accounts in Bitcoin and fiat currencies, as well as Bitcoin-backed USD loans of up to $1 million. These advancements underscore the bank’s forward-thinking approach to cryptocurrency banking.
In addition to Bitcoin, Xapo has also experienced a remarkable 50% quarter-on-quarter increase in euro deposits. This surge coincided with growing concerns about the stability of the US dollar, particularly in light of anticipated economic developments, including Trump’s planned ‘Liberation Day’ in April.
Shifts in stablecoin deposit patterns were also observed among Xapo Bank’s members, with USDC deposits rising by 19.8% while Tether deposits fell by 13.4%. This shift aligns with broader regulatory movements within European cryptocurrency exchanges.
Gadi Chait, Xapo Bank’s head of investment, indicated that despite these short-term fluctuations, Bitcoin’s importance remains unchanged. He emphasized that the intrinsic value of Bitcoin is derived from its long-term potential rather than temporary volatility, suggesting that prudent investors maintain their focus on the bigger picture.
Market Activity: Bitget Reports Surge in Q1 Trading Volumes
In a similar vein, digital currency exchange Bitget has also reported a remarkable increase in trading volumes amid the current market turmoil. According to their Q1 2025 Transparency Report, Bitget’s total trading volume soared to $2.1 trillion, with spot trading volume experiencing a staggering 159% increase.
This robust activity accompanies a significant expansion of Bitget’s user base, which has grown nearly 20%, welcoming almost 5 million new users to its centralized exchange and an additional 15 million to its Bitget Wallet app. The total global user count now exceeds 120 million, highlighting an expanding demographic keen on cryptocurrency trading.
Bitget’s CEO, Gracy Chen, noted that their focus remains steadfast on institutional-grade infrastructure and augmenting their Web3 presence within the ecosystem. Furthermore, in a notable show of solidarity, Bitget extended a $100 million loan to rival exchange Bybit following a significant hack, which has since been repaid.
The evolving landscape of cryptocurrency trading, paired with the strategic movements of institutions like Xapo Bank and Bitget, illustrates a robust enthusiasm for digital assets among investors, particularly during times of volatility. As the cryptocurrency market continues to mature, the long-term optimism presented by these high-net-worth individuals could signal a transformative phase for Bitcoin and its peers.
