Key Points
- The global Bitcoin ATM network is shrinking for the first time since July 2023.
- US law enforcement crackdowns on Bitcoin ATMs have significantly contributed to this decline.
For the first time since July 2023, the number of operational Bitcoin ATMs worldwide is decreasing.
The abrupt end to the 10-month global growth streak of crypto ATMs can be attributed to specific reasons.
The Impact of US Law Enforcement Actions
The United States and Canada collectively host about 91% of the world’s Bitcoin ATMs, according to CoinATMRadar data.
The US has approximately 30,960 (82.6%) machines, while Canada has about 2,989 (7.7%) machines.
Recently, US law enforcement agencies have been targeting Bitcoin ATMs, particularly those frequently implicated in extortion and scams.
Records indicate that at least 300 Bitcoin ATMs have been taken offline this month.
The US market has lost 302 Bitcoin ATMs, and 28 machines have gone offline in Canada.
Global Network Adjustments
Despite the North American reductions, new installations in Australia, Switzerland, and various European countries have somewhat balanced the global network.
Australia recently reached a milestone of 1,000 Bitcoin ATMs, making it the third-largest host.
Since then, the country has added about 41 machines, bringing its total to 1,041 machines, which represents 2.8% of the global total.
Consequently, the net decline of Bitcoin ATMs worldwide is 280.
The recent decrease in Bitcoin ATM numbers raises questions about the future stability of the global network, especially if law enforcement crackdowns intensify.
However, the ongoing growth in other regions suggests that the overall demand for Bitcoin ATMs remains strong.
The diversification of Bitcoin ATM locations, as confirmed by Australia, could help stabilize and potentially refresh the network in the future.
As the crypto market continues to evolve, so too will the infrastructure supporting it.
Therefore, the global Bitcoin ATM space is likely to continue adapting to regulatory pressures while also expanding in regions with growing demand for cryptocurrency services.
