Xapo Bank and Bitget Experience Surge in Trading Volumes Amid Market Volatility

The first quarter of 2025 has proven to be a period of significant market volatility, but it also marked a surge in trading volumes for leading crypto players such as Gibraltar-based Xapo Bank and the digital currency exchange Bitget. Both platforms have experienced notable growth, driven by increased interest in Bitcoin and other digital assets as high-net-worth individuals and institutional players capitalized on the market turbulence.

Xapo Bank, a prominent private bank and Bitcoin custodian based in Gibraltar, reported a substantial rise in Bitcoin trading volumes during the first quarter of 2025. According to the bank, Q1 trading volume grew by 14.2% compared to the previous quarter, with high-net-worth members actively taking advantage of the price dip in Bitcoin. As Bitcoin prices dropped, these investors increased their positions, reflecting a strong belief in Bitcoin’s long-term potential despite short-term market fluctuations.

In Q1 2025, Bitcoin had its worst start to a year since 2018, closing the quarter down by 13%. However, Xapo Bank’s members didn’t seem deterred by the downturn. Instead, they “actively bought the dip,” a move that highlights their confidence in Bitcoin’s enduring value as a hedge against economic instability and inflation.

“Despite short-term headwinds, the bigger picture for Bitcoin remains strong, and current volatility does not diminish Bitcoin’s importance,” said Gadi Chait, Xapo Bank’s Head of Investment.

New Product Launches at Xapo Bank

Xapo Bank has also been innovating within the space, launching a range of new products in 2025. The bank became the first licensed bank in the UK to offer interest-bearing Bitcoin and fiat banking accounts, a significant step in bridging traditional finance with cryptocurrency. In addition, Xapo launched Bitcoin-backed USD loans of up to $1 million in March 2025, further solidifying its position as a leader in the crypto-banking sector.

The bank also reported a notable increase in euro deposits, which rose by 50% quarter-on-quarter. This surge in euro deposits came amidst growing concerns over the future of the US dollar, as markets braced for the potential impact of the Trump administration’s planned “Liberation Day” in April 2025 — an event that many fear could signal a shift in the global financial landscape.

Xapo Bank also observed some notable shifts in its members’ stablecoin deposit patterns. Specifically, USDC deposits saw a 19.8% increase in Q1, while Tether (USDT) deposits dropped by 13.4%. This trend is likely driven by recent regulatory changes in Europe, where cryptocurrency exchanges have been moving to delist Tether in order to comply with the Markets in Crypto-Assets Regulation (MiCAR).

This shift in stablecoin deposits suggests that Xapo’s high-net-worth members are becoming increasingly cautious about regulatory compliance and seeking more stable and transparent alternatives like USDC.

Bitget: Trading Volumes and User Growth Amid Market Turmoil

Bitget, one of the world’s leading digital currency exchanges, also saw a significant surge in trading activity in Q1 2025. The exchange reported a total trading volume of $2.1 trillion, with spot trading volume increasing by 159% to reach $387 billion. This surge came at a time when markets were experiencing increased volatility, providing an opportunity for crypto traders to capitalize on price swings.

Bitget’s user base also expanded dramatically during the quarter. The exchange added nearly 5 million new users on its centralized exchange and 15 million more on its Bitget Wallet app, bringing its global user count to over 120 million. This rapid growth in user adoption underscores the growing interest in digital assets, even as market conditions remain unpredictable.

Gracy Chen, CEO of Bitget, highlighted the company’s commitment to institutional-grade infrastructure and its focus on expanding its Web3 presence. The exchange’s continued investment in its platform and ecosystem is positioning it for long-term success in the evolving crypto landscape.

In an act of industry solidarity, Bitget extended a no-interest, no-collateral loan of 40,000 ETH (worth approximately $100 million at the time) to rival exchange Bybit in February 2025, after Bybit suffered a major hack. The loan was fully repaid by Bybit, showcasing the cooperative spirit within the crypto space.

“No interest, no collateral — this was simply about supporting a peer in need. Great to see Bybit fully recovered, and we never doubted the return of the loan,” Chen remarked, emphasizing the importance of community support in the face of adversity.

The Bigger Picture: Long-Term Belief in Crypto

Despite short-term market volatility, both Xapo Bank and Bitget remain optimistic about the long-term prospects of Bitcoin and the broader crypto market. Xapo Bank’s focus on Bitcoin-backed financial products and its ability to weather market downturns reflect a broader belief in the future of digital assets as a store of value and a hedge against traditional financial risks.

Similarly, Bitget’s impressive trading volume growth and continued expansion demonstrate the increasing institutional interest in cryptocurrencies and the role exchanges play in facilitating the wider adoption of digital assets.

The first quarter of 2025 has seen strong growth for both Xapo Bank and Bitget, underscoring the resilience of the cryptocurrency market amid market volatility. Xapo Bank’s trading volume surge and the introduction of innovative financial products highlight the growing intersection of traditional banking and crypto. Meanwhile, Bitget’s soaring trading volumes and rapid user base expansion point to the increasing adoption of digital assets across global markets.

As both institutions continue to innovate and expand, their ability to adapt to regulatory changes, market conditions, and shifting user preferences will be critical in shaping the future of the crypto space. Despite short-term challenges, the long-term outlook for Bitcoin and other digital assets remains strong, and both Xapo Bank and Bitget are well-positioned to capitalize on the ongoing growth of the industry.