Global Bitcoin ATM Count Drops Amid Inflation and High Operational Costs

The number of Bitcoin ATMs, or crypto ATMs, has plummeted this year. According to data compiled by BitcoinCasinos.com, more than 5,300 Bitcoin ATMs have been removed year-to-date. The total number fell to around 33,800 worldwide.

The year 2022 proved to be a challenging time for the cryptocurrency industry. Last year was marked by a year-long bear market accompanied by geopolitical tensions and global inflation. This resulted in a dramatic slowdown in the installation of Bitcoin ATMs worldwide.

This report explores the reasons behind the bear market, geopolitical tensions, and global inflation and how they affected the crypto industry. Particularly the installation of Bitcoin ATMs.

Bearish Narratives

“Bear market” is a term used to describe a period of declining asset prices. Typically in the stock or cryptocurrency markets. In the crypto industry, a bear market is often characterized by a severe drop in the value of cryptocurrencies. That can last for months or even years. In 2022, the crypto industry was hit by a year-long bear market that affected the growth and adoption of cryptocurrencies.

One of the reasons for the bear market was the crackdown on cryptocurrency trading and mining activities by several countries worldwide. China, previously a hub for crypto mining, banned all cryptocurrency-related activities, including trading and mining. This led to a massive drop in the price of cryptocurrencies. Particularly Bitcoin, which impacted the installation of Bitcoin ATMs.

ATMs Disappear

Investors and businesses became more cautious, leading to lower demand for crypto services, including the installation of Bitcoin ATMs. September 2022 was the first time total crypto ATMs saw a net decline. However, 2023 marked a new low with a reduction in total crypto ATM installations for consecutive months.