Many facets of the crypto industry took a big hit amid the market downturn, including the use and installation of crypto ATMs.
Over the years, the growth of crypto ATM installations had increased steadily, jumping slightly in August to around 34,123, as Bloomberg first reported, citing data from Crypto ATM Radar. But in recent months things have shifted, and for the first time ever in September more crypto ATMs were removed than installed in the U.S.
That month, the price of Bitcoin hit a two-month low around $18,000, and it continued to falter.
Though the number of crypto ATMs installed rebounded slightly in October, and continued into November, the September decline shows how the crypto sector was struggling to recover even before the collapse of crypto exchange FTX and the apparent scheming of Sam Bankman-Fried.
Once FTX filed for bankruptcy in November, Bitcoin fell further, alongside the larger cryptocurrency market. Bitcoin is currently trading at around $16,000, down 77% from its all-time high last year.
Many other coins and projects—especially those associated with FTX and Bankman-Fried—have crashed or deteriorated completely.
In turn, “money funneled” through crypto ATMs across the world dropped to $230 million in October from $349 million in January 2021, according to Bloomberg. “The drop came even as the number of machines installed worldwide almost tripled in the period. That implies a roughly 75% decrease in the value the average unit generates.”
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