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While many crypto traders were nervously watching Bitcoin’s price tumble at the start of 2025, wealthy investors had something else in mind: buying the dip with confidence. Gibraltar-based Xapo Bank, known for its secure Bitcoin custody and private banking services, has reported a 14.2% increase in BTC trading volume in Q1 2025 compared to the previous quarter.

And no, it wasn’t retail investors panic-buying after a crypto YouTuber shouted “TO THE MOON.” It was high-net-worth individuals deliberately stacking sats while others were selling in fear – a strong signal of long-term trust in Bitcoin’s potential, despite short-term volatility.

Xapo’s Surge Comes Despite Bitcoin’s Rough Start to the Year

Let’s not sugarcoat it – Bitcoin had a rough New Year’s party. With a 13% drop in price, it suffered its worst kickoff since 2018. But while some were busy calling for the end of crypto (again), savvy investors took this correction as a golden opportunity to strengthen their positions. Talk about buying the fear!

Xapo Bank Expands Boldly in the UK

In 2025, Xapo didn’t just rest on its crypto laurels. The bank significantly expanded its services in the UK, becoming the first licensed bank in the country to offer interest-bearing accounts in both Bitcoin and fiat currencies. In March, it went a step further by launching USD loans backed by Bitcoin – up to a cool $1 million per borrower. So if you’re sitting on some BTC and eyeing a yacht, Xapo might just be your new favorite lender.

Notably, euro deposits at the bank jumped 50% compared to the previous quarter. According to Xapo, this trend is driven by growing skepticism over the stability of the U.S. dollar and looming fears of a recession in the U.S. – fueled in part by former President Donald Trump’s ominous “Day of Liberation” declaration for April.

Stablecoin Usage Shift: MiCA’s Ripple Effect

But that’s not all that’s changing at Xapo. Stablecoin habits are undergoing a transformation, thanks to the European Union’s new Markets in Crypto-Assets Regulation (MiCA).

As a result:

USDC deposits surged nearly 20%
Tether (USDT) deposits dropped by more than 13%

Why the sudden flip? European exchanges are scaling back or dropping Tether due to MiCA’s tighter compliance standards. Apparently, regulators don’t love “offshore mystery coins.” Meanwhile, USDC, with its more transparent backing and regulatory-friendly image, is becoming the favorite kid in the EU crypto playground.

Gadi Chait, Xapo’s Chief Investment Officer, summed it up nicely: despite market noise, investors still believe in Bitcoin’s long-term promise.

Bitget: Breaking Records and Helping the Competition

While Xapo was growing steadily, Bitget was sprinting. The crypto exchange crushed expectations in Q1 2025, reporting a jaw-dropping $2.1 trillion in total trading volume. And it’s not just whales making waves – spot trading alone surged 159% to hit $387 billion.

Even more impressive? Bitget gained 20 million new users in just one quarter, pushing its global user count past 120 million. Much of this growth is credited to its slick Bitget Wallet app and rising trust in the platform among crypto traders and investors.

But Bitget wasn’t just busy growing its own empire – it also extended a hand to a rival. In February, after competitor Bybit was hit by a major hack, Bitget stepped in with an emergency loan of 40,000 ETH (roughly $100 million). The funds were later fully repaid, proving that even in crypto, collaboration isn’t dead.

Bitget CEO Gracy Chen emphasized the importance of solidarity in the crypto space, noting that Bitget plans to continue investing heavily in its infrastructure and Web3 ecosystem expansion.

Conclusion: Institutions Are Doubling Down on Crypto

Between Xapo’s wealth-driven growth and Bitget’s record-shattering performance, it’s clear that the crypto industry is maturing fast – with or without Bitcoin’s price behaving itself. Institutions aren’t just dipping their toes in the market anymore – they’re diving in headfirst.

Whether it’s buying Bitcoin in a bear market, offering BTC-backed loans, or rescuing competitors, the message is loud and clear: crypto is here to stay, and the big players know it.

So next time the market wobbles and your favorite meme coin loses 30% in a day, just remember – somewhere, a wealthy investor is buying the dip and grinning behind a hardware wallet.

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Roman B.

I have 6 years of writing experience on several leading websites dealing with cryptocurrencies and other investments. I have been in the Web3 sector for a similar amount of time and have collaborated on several projects from NFT to P2E. My previous experiences: Business2Community.com, TradingPlatforms.com, CryptoSvet.