Bitcoin exchange volumes hit record levels in Q1 2025, climbing 14.2% compared to Q4 2024. These record quarterly volumes were buoyed by falling BTC prices and strong EUR (+50%) and USDC (+19.8%) deposits, as Xapo Bank members sought to take advantage of turbulent crypto markets.
These findings come from the inaugural edition of the Xapo Bank Digital Wealth Report. Published quarterly, the Xapo Bank member report leverages Xapo’s position as a pioneering private bank providing financial security and wealth growth opportunities in the Bitcoin era. With more than a decade of Bitcoin knowledge, the bank’s Q1 report reveals the commitment to the long-term potential of Bitcoin from its membership of high-net-worth individuals.
Confidence Amidst Correction
The opening months of 2025 sparked tremendous optimism for the crypto industry, marked by Bitcoin’s record ascent past $100,000, rising institutional inflows, and the promise of swift pro-crypto initiatives from the new U.S. administration.
This optimism was reflected in total BTC exchange volume, with Xapo Bank observing a 14.2% increase compared to Q4 2024 amongst members. This bucked the broader market trends that saw volumes decrease compared to ‘Trump Pump’ induced highs of November and December 20241.
In February 2025 alone, Xapo Bank saw member BTC buy orders rise 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 across the month.
Members Seek Price & Custody Safety Amid Global Uncertainty
The first quarter also saw EUR deposits at Xapo Bank surge by 50% in total volume, demonstrating strong demand for euro-denominated crypto-enabled banking services. This rapid increase in volume came amidst mounting concern about the future of US dollar primacy and the threat of a US recession as markets braced for Trump’s planned “Liberation Day” in April.
Despite this growing consumer interest, European institutions are still coming up to speed with the industry. While fewer than 20% of European banks provide crypto services, Xapo Bank is capitalising on this gap by delivering a safe, crypto-enabled solution in a traditional banking environment.
Alongside EUR deposit increases, stablecoins also experienced growth, with USDC deposits up 19.8% in Q1 2025 compared to Q4 2024. Stablecoins have experienced a surge across the industry, with the asset type’s market cap exceeding $236 billion and traditional finance titans, including Bank of America, PayPal, and Fidelity, among new entrants.
Yet there were signs of divergence between stablecoin volumes. In the same period, USDT deposits into Xapo member accounts 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.
Setting the Stage for Q2
However, across the quarter, macroeconomic headwinds, geopolitical instability, and the Bybit hack have since dimmed some of Bitcoin’s early exuberance, with the asset enduring its worst first quarter since 2018. Despite this, Xapo Bank members continued to show confidence in Bitcoin, with BTC buy orders rising to 46%, exceeding the Q4 average.
Commenting on the realities of investing in Bitcoin in the current climate, Gadi Chait, Head of Investment at Xapo Bank, said:
“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.”
“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.”