Newly released data suggests that the quantity of Bitcoin ATMs has experienced a notable increase, after a worldwide decline lasting four months. The initial four months of 2023 demonstrated a decrease of 5,850 crypto ATMs across the globe. Nevertheless, the situation took a turn in May, with the addition of 1,397 machines to the worldwide crypto ATM network.
The surge in Bitcoin ATMs is a promising development for the cryptocurrency industry, indicating that despite the recent decline, there is still a robust appetite for Bitcoin and other digital currencies. The decline in the number of crypto ATMs in the first four months of 2023 is probably due to the general market downturn, which led to a substantial drop in the value of Bitcoin and other cryptocurrencies.
Bitcoin ATMs may not directly contribute to the growth of the Bitcoin network, but they offer a practical way for people to exchange their traditional money for cryptocurrency. In 2023, Australia installed 233 ATMs, making it the third-largest hub for crypto ATMs globally. Despite a decline in the number of ATMs in the US over the past year, it remains the top country with 84.7% of all crypto ATMs worldwide, with Canada coming in second at 7.6%.
Reason for the Four-Month Downturn
The beginning of 2023 saw a downturn in the cryptocurrency market, leading to a decrease in the number of Bitcoin ATMs. Moreover, regulatory hurdles have played a role in the decline of Bitcoin ATMs during the first four months of 2023. Many countries have enforced strict regulations on cryptocurrencies, making it difficult for Bitcoin ATM operators to conduct their business. Apart from that, the ongoing geopolitical tensions among various nations have also played some part.
Furthermore, the competition between Bitcoin ATM operators has contributed to the decrease in Bitcoin ATMs. With more operators vying for a share of the market, existing operators are facing greater difficulties in maintaining their position.
