Global Bitcoin ATM Numbers Decline, Breaking 10-Month Growth Streak
By Harvey Hunter
Last updated:
May 21, 2024 15:22 EDT
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1 min read
In a departure from the trend of expansion that began in July 2023, the number of Bitcoin ATMs worldwide has decreased in May, marking the end of a 10-month period of growth. This decline was mainly driven by the removal of over 300 ATMs from service in the United States, which accounts for more than 80% of the global Bitcoin ATM market.
Sharp Decrease in US Bitcoin ATMs
According to data from Coin ATM Radar, the total number of Bitcoin ATMs globally dropped from 37,902 to 37,621 in May. The United States experienced the largest decline, losing 302 machines, while Canada, the second-largest market for Bitcoin ATMs, lost 28 machines. The exact reasons for this sudden decline remain unclear, but law enforcement agencies in the US have been actively cracking down on ATMs involved in illegal activities such as extortion and scams.
Scams associated with Bitcoin ATMs have been on the rise in recent years, coinciding with the increased usage of Bitcoin. In the past year, a major manufacturer called General Bytes suffered a significant security breach that resulted in the theft of $1.5 million worth of Bitcoin from its operators.
As of now, 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 swiftly emerged as the third-largest network of active Bitcoin ATMs after the US and Canada, with 1,041 (2.8%) machines.
What Impact Does This Have on Bitcoin Prices?
Despite the decrease in Bitcoin ATM numbers, Bitcoin Depot, the largest Bitcoin ATM operator in the US, reported consistent earnings in 2024. The company’s 10-K annual report, released on April 15th, revealed that its revenue is not influenced by the price of Bitcoin.
Bitcoin Depot stated that the majority of its users utilize its services for legitimate purposes, such as money transfers, international remittances, and online purchases, rather than speculating on the price of Bitcoin.
The lack of correlation between revenues and the BTC price is attributed in part to the nature of the services provided. Therefore, this decline should not be seen as a bearish indicator for the overall crypto market, but rather as a result of external factors.
For instructions on how to use Bitcoin ATMs, please consult our 2024 Guide.
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