July 14, 2024
Bitcoin News

Global Bitcoin ATM Network Shrinks Amid Bitcoin Price Decline

Alongside the drop in Bitcoin prices, the global Bitcoin ATM network has also faced a decline. About 334 Bitcoin ATMs were lost in less than 40 days. June marked the end of a 10-month streak of month-on-month increases in Bitcoin ATM installations, with 107 ATMs going offline. This was further accelerated in July, with 227 ATMs being removed as of July 5.

Regional Differences

On one hand, Australia and Spain are expanding their Bitcoin ATM network; on the other, the U.S. and Europe are contributing to its global reduction.

Currently, the U.S. holds about 82.6% of total Bitcoin and crypto ATMs worldwide. But surprisingly in June, the US lost 182 ATMs and 239 ATMs in the first week of July. Furthermore, Europe shed 29 ATMs in July, bringing down its total to 1,589 crypto ATMs.

Contrastingly, Australia added 77 new Bitcoin ATMs into global circulation.

Potential Causes and Impacts

The reason for this downturn in crypto ATMs could be linked to a worldwide crackdown by authorities to control and prevent financial crimes. Authorities, including the United States Secret Service’s Cyber Fraud and Money Laundering Task Force, have been investigating Bitcoin ATM operators for their potential involvement in cryptocurrency scams.

Despite the shrinkage in ATM installations, Bitcoin Depot reported that its revenues are not correlated with Bitcoin prices. Bitcoin Depot is the largest ATM operator in the U.S. In 2023 and 2022, the company’s revenue was $689 million and $647 million, respectively. Thus, illustrating the minimal impact of Bitcoin’s price volatility. According to Bitcoin Depot, most users utilize their services for non-speculative purposes like money transfers, international remittances, and online purchases.

Image by studiogstock on Freepik

Disclosure Statement: Miami Crypto does not take any external funding, or support to bring crypto news to the readers. We do not have any conflicts of interest while writing news stories on Miami Crypto.

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