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In the first quarter of 2025, Bitcoin trading volume surged at Xapo Bank, showcasing long-term confidence in BTC amid market volatility.
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This increase in trading activity is a notable indicator that high-net-worth investors are actively accumulating Bitcoin, even as its price faces pressure.
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“Despite short-term headwinds, the bigger picture for Bitcoin remains strong,” stated Gadi Chait, head of investment at Xapo Bank, emphasizing the cryptocurrency’s long-term viability.
Bitcoin trading volume rises at Xapo Bank, showcasing long-term investor confidence despite market pressures; a promising outlook for BTC in 2025.
Significant Growth in Bitcoin Trading Volume Amidst Market Turmoil
Xapo Bank, a prominent private bank and Bitcoin custodian, reported a remarkable 14.2% increase in Bitcoin trading volumes during the first quarter of 2025. This rise occurred despite Bitcoin’s challenging market performance, where it closed the quarter down 13% — marking the worst year start since 2018. The increased trading volume reflects the strong commitment of high-net-worth individuals who “actively bought the dip,” as noted by Xapo Bank. This commitment underscores investors’ long-term confidence in the inherent value of Bitcoin, even in the face of ongoing market turbulence.
Impact of Economic Concerns on Bitcoin Investments
Notably, the recent surge in Bitcoin trading volume coincides with heightened global economic concerns. Xapo Bank attributed the growing interest in Bitcoin to worries surrounding the primacy of the US dollar and potential recession threats in the United States. This economic unease encouraged many investors to consider Bitcoin as a safer alternative for their investments. Euro deposits increased by 50% quarter-on-quarter, demonstrating a changing sentiment as investors look for more resilient alternatives. Additionally, Xapo’s data reported a shift in stablecoin deposits, with USDC deposits up by 19.8% while Tether (USDT) saw a decline of 13.4%, influenced by regulatory changes in Europe.
Bitget Exchange Records Significant Trading Activity
Another notable development in the crypto space is the substantial growth in trading volume on Bitget, which posted a trading volume of $2.1 trillion in Q1 2025. This figure highlights a dramatic increase of 159% in spot trading volume from the previous quarter, reflecting a robust trading environment amidst ongoing market volatility. The total user base on Bitget also rose by nearly 20%, indicating strong adoption and trust in the platform among traders.
Institutional Support and Community Focus at Bitget
Bitget’s CEO, Gracy Chen, stated that the company is prioritizing “institutional-grade infrastructure” while expanding its presence in the Web3 ecosystem. The exchange also demonstrated a commitment to supporting peers in the industry, exemplified by a recent loan of 40,000 ETH (approximately $100 million) to rival exchange Bybit after its security breach. This gesture underscores the collaborative spirit within the cryptocurrency community, as Chen mentioned, “No interest, no collateral — this was simply about supporting a peer in need.”
Conclusion
The activities of Xapo Bank and Bitget underscore a growing trend where high-net-worth individuals are reaffirming their confidence in Bitcoin as a long-term investment vehicle. Despite short-term challenges, the data indicates that the broader sentiment within the crypto space remains positive. As global economic uncertainties persist, Bitcoin’s fundamental value continues to attract investors looking for a secure asset class. With increasing trading volumes and shifts in investment patterns, Bitcoin is poised to remain a significant player in the financial landscape.
