Exploring the Decline in Bitcoin ATM Numbers Worldwide 📉
After a 10-month period of growth, the number of Bitcoin ATMs worldwide declined in May, interrupting a trend of expansion that began in July 2023. The decrease was driven largely by the removal of over 300 ATMs from service in the United States, which represents over 80% of the global Bitcoin ATM market.
US Bitcoin ATM Numbers Decline Sharply 🇺🇸
According to recent data, the total number of Bitcoin ATMs globally fell from 37,902 to 37,621 in May. The US experienced the largest decline, losing 302 machines, while Canada, the second-largest market for Bitcoin ATMs, lost 28 machines. While the reasons for this sudden decline are unclear, law enforcement agencies in the US have been actively targeting ATMs used for illegal activities like extortion and scams.
- The US saw a loss of 302 Bitcoin ATMs.
- Canada lost 28 machines.
Scams Related to Bitcoin ATMs 🚫
- Scams related to Bitcoin ATMs have been on the rise in recent years.
- Last year, a major manufacturer experienced a security breach resulting in the theft of $1.5 million worth of Bitcoin from its operators.
At the time of publication, the net decline in crypto ATMs has been reduced to 280 due to the installation of new machines in Australia, Switzerland, and Europe. Australia has quickly become the third-largest market for Bitcoin ATMs after the U.S. and Canada, with 1,041 machines.
Impact on Bitcoin Prices 📉
Despite the decline in Bitcoin ATM numbers, Bitcoin Depot, the largest Bitcoin ATM operator in the US, reported steady earnings in 2024. The company’s April 15th 10-K annual report revealed that its revenue is not correlated with the price of Bitcoin. This indicates that a majority of its users utilize its services for legitimate purposes, such as money transfers, international remittances, and online purchases, rather than for speculation on the price of Bitcoin.
Bitcoin Depot highlighted that the lack of correlation between revenues and the BTC price is partly due to the nature of the services provided. Therefore, this decline shouldn’t be interpreted as a bearish indicator for the crypto market at large – but is instead likely credited to external factors.
Expansion and Partnerships 🚀
- Bitcoin Depot’s Q1 earnings report showed a rise in expansion with kiosks being deployed in Puerto Rico and Australia.
- The company has been forming large partnerships to expand its reach.
Hot Take: What Does the Decline in Bitcoin ATMs Mean for Crypto? 🤔
As the number of Bitcoin ATMs globally declined, particularly in the US, it sparked questions about the future of crypto accessibility and usage. While the decrease may be attributed to various factors such as regulatory scrutiny and security concerns, the overall impact on Bitcoin prices and market sentiment remains to be seen. Companies like Bitcoin Depot continue to navigate the evolving landscape of cryptocurrency usage, emphasizing the importance of legitimate transactions and services. The decline in Bitcoin ATM numbers serves as a reminder of the ongoing challenges and opportunities in the crypto space, shaping the way forward for industry players and enthusiasts alike.
By
By
By
By