- The number of Bitcoin ATMs globally fell in May after a 10-month upsurge, halting an upward trend that had started in July 2023.
- The withdrawal of more than 300 ATMs from operation in the US, which accounts for more than 80% of the worldwide Bitcoin ATM industry, was a major factor in the decline.
US Bitcoin ATM Count Sharply Declines
The total number of Bitcoin ATMs worldwide decreased from 37,902 to 37,621 in May, according to statistics from Coin ATM Radar.
Canada, the second-largest market for Bitcoin ATMs, lost 28 machines, while the US witnessed the worst fall, losing 302 devices. Law enforcement organizations in the US have been aggressively pursuing ATMs used for illicit operations including extortion and scams, even if the reasons for this abrupt fall are unknown.
With the surge in popularity of Bitcoin, scams involving Bitcoin ATMs have proliferated in recent years. A significant security breach at General Bytes last year led to the loss of $1.5 million worth of Bitcoin from the company’s owners.
However, because of the addition of new machines in Australia, Switzerland, and Europe, the net loss in cryptocurrency ATMs has been lowered to 280 as of the time of writing.
With 1,041 (2.8%) machines, Australia has swiftly risen to the third-largest active Bitcoin ATM network behind the United States and Canada.
What Impact Does This Have on the Price of Bitcoin?
The biggest Bitcoin ATM operator in the US, Bitcoin Depot, reported consistent profits in 2024 despite the drop in the number of Bitcoin ATMs. The company’s revenue is unrelated to the price of Bitcoin, according to its 10-K annual report, which was released on April 15.
According to Bitcoin Depot, the majority of its users don’t use its services to speculate on the price of Bitcoin; instead, they use them for legitimate objectives including online purchases, overseas remittances, and money transfers.
According to Bitcoin Depot, the nature of the services offered has a role in the absence of relationship between earnings and the price of BTC. As a result, this decrease is most likely the result of outside influences rather than serving as a gloomy indication for the cryptocurrency market as a whole.
Disclaimer : This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments.
