After a 10-month period of growth, the number of Bitcoin ATMs worldwide declined in May, interrupting an expansion trend that began in July 2023. The decline was mainly due to the retirement of more than 300 ATMs in the United States, representing more than 80% of the global Bitcoin ATM market.
The number of Bitcoin ATMs in the U.S. is falling sharply
According to Coin ATM Radar, the total number of Bitcoin ATMs worldwide fell from 37,902 to 37,621 in May. The United States saw the largest decline, losing 302 machines, while Canada, the second largest market for Bitcoin ATMs, lost 28 machines. Although the reasons for this sudden decline are unclear, law enforcement agencies in the US are actively targeting ATMs used for illegal activities such as extortion and fraud.
Bitcoin ATM scams have become increasingly common in recent years, coinciding with an increase in Bitcoin usage. Last year a major manufacturer, General Bytes, experienced a major security breach that resulted in the theft of $1.5 million worth of Bitcoin from its operators.
However, at the time of publication, the net decrease in the number of cryptocurrency ATMs had been reduced to 280 due to the installation of new machines in Australia, Switzerland and Europe.
What effect does this have on Bitcoin prices?
Despite a decline in the number of Bitcoin ATMs, Bitcoin Depot, the largest operator of Bitcoin ATMs in the US, has reported steady profits through 2024. The company’s April 15 10-K annual report revealed that its revenues are not correlated with the price of Bitcoin.
The company said most of its users use their services for legitimate purposes, such as remittances and online shopping, rather than to speculate on the price of Bitcoin.
The Bitcoin Depot added that the lack of correlation between revenue and the price of BTC is partly due to the nature of the services provided. Therefore, this decline should not be interpreted as a bearish indicator for the cryptocurrency market as a whole – rather, it is likely to be attributed to external factors.
