Coinciding with the decrease in Bitcoin prices, the global network of active Bitcoin ATMs has seen a decline of 334 machines in under 40 days.
In June, a total of 107 Bitcoin ATMs went offline, putting an end to the 10-month streak of monthly increases in net installations. The reduction was further accelerated in July, with 227 crypto ATMs being removed from the global network within just five days, as of July 5.
While countries like Australia and Spain are expanding their Bitcoin ATM presence, the United States and Europe are major contributors to the global decline. The US, which accounts for approximately 82.6% of the total number of Bitcoin and crypto ATMs worldwide, lost 182 ATMs in June and an additional 239 ATMs in the first week of July alone.
In Europe, 29 ATMs were removed in July, bringing the total down to 1,589 crypto ATM machines. On the other hand, Australia added 77 new Bitcoin ATMs to the global network.
The ongoing decline in crypto ATMs can be attributed to a global crackdown by authorities aimed at curbing financial crimes. Authorities, including the United States Secret Service’s Cyber Fraud and Money Laundering Task Force, have previously investigated Bitcoin ATM operators and their involvement in crypto scams.
Bitcoin Depot, the largest ATM operator in the United States, has revealed that there is no correlation between cryptocurrency prices and their revenue. The company stated that its revenues in 2023 and 2022, which amounted to $689 million and $647 million respectively, were not influenced by the price of Bitcoin, even during periods of high volatility.
For example, when Bitcoin experienced a 155% surge in 2023, Bitcoin Depot’s year-over-year revenue growth was just 6%. The lack of correlation is partly due to the nature of the services provided by the ATM operator. According to Bitcoin Depot, the majority of its users utilize their products and services for non-speculative purposes such as money transfers, international remittances, and online purchases.
In conclusion, the decline in Bitcoin prices has led to a decrease in the global network of active Bitcoin ATMs. While some countries are expanding their ATM presence, the United States and Europe have contributed to the reduction. The decline can be attributed to a global crackdown on financial crimes, and the lack of correlation between Bitcoin prices and ATM operator revenues suggests that many users are utilizing the services for non-speculative purposes.