Gibraltar-based Xapo Bank, a digital asset-friendly regulated bank, is reporting that Bitcoin trading volume hit record highs in Q1 2025 compared to the prior quarter. Xapo says that strong Euro and strong dollar (USDC) deposits have helped fuel the trading as Bitcoin prices dived.
Xapo reports that the early months of 2025 “sparked tremendous optimism for the crypto industry,” as Bitcoin topped $100,000.
This initial optimism drove Bitcoin trading volume to increase by 14.2% in Q1 when compared to Q4 2024
In February 2025, Xapo Bank shares that BTC buy orders rose to 50.7%, compared to a Q4 average of 41%, capitalising on the BTC price correction that drove the asset‘s average price below $100,000 during the month.
Q1 2025 also saw Euro deposits at Xapo Bank jump by 50% in total volume. They say the increase is being driven by growing concerns about the future status of the US dollar and a potential recession. USDC deposits are up 19.8% in Q1 2025 compared to Q4 2024
Simultaneously USDT deposits on Xapo dropped by 13.4%, against a backdrop of Tether’s withdrawal of its euro-backed stablecoin and the delisting of USDT from a number of exchanges.
Xapo shares that while fewer than 20% of European banks provide crypto services, they are capitalising on this gap by delivering a crypto solution in a traditional banking environment.
Xapo claims that in spite of the chaos, their customers are confident in Bitcoin, with buy orders rising.
Gadi Chait, Head of Investment at Xapo Bank, said that 2025 brought excitement and confidence, but the turbulence of Q1, driven by inflation concerns, stock market gyrations, and, of course, US trade policy, Bitcoin is well-positioned due to its long-term performance.
“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.”