Xapo Bank has reported a 14.2% increase in Bitcoin exchange volumes in the first quarter of 2025 compared to the final quarter of 2024. The data, published in the bank’s inaugural Digital Wealth Report, reflects member activity amid volatile conditions and falling Bitcoin prices.
Member confidence in Bitcoin remained high despite global uncertainty, with EUR deposits up 50% and USDC deposits rising 19.8% quarter-over-quarter. In contrast, USDT deposits fell by 13.4%, coinciding with the withdrawal of Tether’s euro-backed stablecoin and its removal from several exchanges.
“Opportunity for Bitcoin has always been in its long-term performance”
Gadi Chait, Head of Investment at Xapo Bank, commented, “2025 was welcomed with confidence and excitement, but the first quarter has been turbulent. The threat of tariff wars, stock market uncertainties, and lingering inflationary pressures led to caution across global markets, including crypto. While global events painted an erratic picture, the opportunity for Bitcoin has always been in its long-term performance, not its short-term volatility.”
Bitcoin’s price fell below $100,000 during February, yet Xapo Bank members increased their BTC buy orders to 50.7%, up from 41% in Q4 2024. Overall BTC buy activity remained elevated through March, with the quarter closing at 46%, higher than the previous quarter’s average.
The rise in EUR and USDC deposits may also suggest early signs of diversification away from USD-denominated holdings. The report notes growing concern over the future of dollar primacy and investor hedging ahead of U.S. policy shifts, including the anticipated “Liberation Day” by the new Trump administration.
“Current volatility does not diminish Bitcoin’s importance”
Despite a sharp downturn in Bitcoin’s market performance, marking its worst first quarter since 2018, Xapo Bank recorded record-breaking exchange volumes. This resilience sets the tone for Q2, even as the market grapples with macroeconomic pressure, geopolitical events, and security issues such as the Bybit exchange breach.
Chait added, “Xapo Bank member data shows that despite short-term headwinds, the bigger picture for Bitcoin remains strong and current volatility does not diminish Bitcoin’s importance. As the benchmark of the digital currency ecosystem, Xapo remains steadfastly dedicated to being Bitcoin-first.”
Xapo Bank launched in 2013 as a crypto-native private bank focused on integrating digital assets into everyday financial infrastructure. Members benefit from fiat and stablecoin services, Bitcoin-backed lending, access to U.S. equities, and the ability to spend BTC via global debit card support.
The bank is regulated by the Gibraltar Financial Services Commission and has passported its license to the United Kingdom, expanding access to users across Europe and the City of London.
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