The year 2023 has been quite eventful for the crypto industry, with several positives and negatives. In the latest development, Bitcoin and crypto ATM installations have dropped by more than 5,000 units in 2023 based on data from Coin ATM Radar.
Global Crypto ATM Network Records Heavy Decline In Q1 2023
Although the crypto market began the year with a bounce following the FTX crises, Coin ATM Radar recorded that 1,587 Bitcoin ATMs were uninstalled and decommissioned in the month of January.
Going into February, when several assets experienced a general price loss, the crypto ATM network saw some positives, with only 275 units going offline globally.
However, the month of March was quite dreadful as 3,627 ATMs across the world were removed from the network representing the biggest monthly decline on the crypto ATM network in over nine years.
According to Coin ATM Radar, the total negative net change of ATM installations in 2023 so far is 5,489, leaving only 33,729 active ATMs operating all over the world.
Of these lots, over 28,000 units are in the United States, accounting for over 84% of the global crypto ATM network. Other countries with a good presence of Bitcoin ATMs include Canada, Australia, Switzerland, etc.
Behind The Decline
Since the introduction of the first Bitcoin ATM in 2013, crypto ATM net change has always been positive, barring a negative record in September 2022 and the first three months of this year.
That said, there could be various reasons behind this sudden and unusual drop in ATM installations. However, the most notable one appears to be a drastic reduction in the number of installed crypto ATMs in the United States going as far back as last year.
According to Coin ATM radar, over 5,000 ATMs in the U.S. have gone offline between November 2022 and the present date. And although other nations such as Australia, Canada, Spain, and other crypto-friendly countries have recorded positive Bitcoin ATM growth in this same period, the dominance of the U.S. paints a rather gloomy picture for the global crypto ATM network.
The negative ATM installation growth in the U.S. could be as a result of several factors, including the crypto winter that occurred in late 2022 and its ripple effects which led to the collapse of some U.S. crypto-friendly banks earlier this year.
That said, it remains unknown how long this decline in ATM installations will continue. However, many could hope for a recovery soon as these teller machines are vital to the mainstream adoption of cryptocurrency worldwide.
Total crypto market valued at $1.15 T | Source: TOTAL Chart on Tradingview.com
Featured Image: Finbold, Chart from Tradingview, Coin ATM Radar