The global network of Bitcoin ATMs has experienced its first significant decline since July 2023, primarily due to a sharp reduction in active machines within the United States and Canada. Despite significant contributions from countries worldwide throughout 2024, this month saw a net decrease in the number of Bitcoin ATMs, breaking a 10-month growth streak.
Key Points:
Global Decline in Bitcoin ATMs: The total number of active Bitcoin ATMs worldwide has decreased for the first time in nearly a year, falling short of reclaiming the 38,000 mark lost in January 2023.
US and Canada Dominance: The United States and Canada together account for 91.4% of the global Bitcoin ATM network, with the US hosting 31,089 (82.6%) and Canada 2,909 (7.7%) machines.
Monthly Reductions: As of May 21, 2024, the US market saw a reduction of 302 Bitcoin ATMs, and Canada saw 28 machines go offline. However, new installations in Australia, Switzerland, and Europe helped mitigate the net global decline to 280 ATMs.
Law Enforcement Impact: US law enforcement agencies are actively shutting down Bitcoin ATMs frequently used for extortion and scams, contributing to the decline. The specific reasons behind the recent sharp reduction remain unclear.
Global Distribution and Trends:
Countries outside the US and Canada have played a significant role in the month-on-month increase in Bitcoin ATMs throughout 2024, collectively contributing to a near-recovery of the 38,000 active machine mark. Despite these efforts, the recent decline highlights vulnerabilities in the global network.
Distribution of Crypto ATMs by Region:
Australia: Hosts the third-largest network with 1,041 (2.8%) Bitcoin ATMs, following the US and Canada.
Other Countries: Several countries in Europe and Switzerland also saw new installations, although they were not enough to offset the overall decline.
Impact on the Market:
Bitcoin Depot, the largest Bitcoin ATM operator in the US, reported steady earnings throughout 2024. Interestingly, the company's revenues have shown no historical correlation with Bitcoin's price. This observation is based on user behavior, as a majority of Bitcoin Depot's users engage in non-speculative activities, including money transfers, international remittances, and online purchases.
Insights from Bitcoin Depot:
User Behavior: Bitcoin Depot's surveys indicate that most users utilize Bitcoin ATMs for practical purposes rather than speculation.
Revenue Stability: The nature of the services provided by Bitcoin Depot, such as facilitating everyday transactions, contributes to the stability of its revenues despite fluctuations in Bitcoin prices.
The recent decline in Bitcoin ATMs highlights the challenges and uncertainties facing the global cryptocurrency infrastructure. While the US and Canada remain dominant players, regulatory actions and market dynamics continue to shape the landscape. As countries like Australia and several European nations contribute to the growth, the global network remains resilient but faces ongoing scrutiny and regulation.
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Disclaimer:
The information provided in this article is for educational and informational purposes only and should not be construed as financial advice. Investing in cryptocurrencies involves significant risk, including the risk of loss. The prices of cryptocurrencies can be highly volatile and unpredictable. Always conduct your research and consult with a qualified financial advisor before making any investment decisions. The author and publisher of this article are not responsible for any financial losses or gains incurred as a result of following the advice or information provided herein.
Source: TradingView
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