Bitcoin ATM Boom Expected as Crypto Fever Soars Ahead of Halving

Amid the anticipated Bitcoin halving, a surge in global Bitcoin ATM installations is predicted. Despite a decline in 2023, the industry has rebounded, with 1,469 ATMs installed since March 2024. Operators note that past bull markets have fueled ATM adoption, with the FOMO (fear of missing out) phase driving customer influx. While spot Bitcoin ETFs have gained approval, they are seen as catering to a distinct customer base compared to Bitcoin ATM users, who typically transact in cash due to under or unbanked status. The upward trend in Bitcoin adoption is expected to benefit ATM operators, suggesting a growing need for physical access to cryptocurrency.

Bitcoin ATM Renaissance on the Horizon as Crypto Fervor Escalates Amidst Bitcoin Halving Anticipation

The imminent Bitcoin halving, a pivotal event in the cryptocurrency realm, is poised to ignite a global surge in Bitcoin ATM installations, according to industry experts. Brandon Mintz, CEO of Bitcoin Depot, a leading Bitcoin ATM operator, predicts a dramatic acceleration in ATM deployment as crypto fear of missing out (FOMO) reaches its peak.

"It's looking really positive that the industry continues to see a lot of growth in kiosk count," Mintz told Cointelegraph.

Crypto ATM Industry Rebounds with Bitcoin Resurgence

After a challenging 2023, with crypto ATM installations experiencing their first annual decline in a decade, the industry has roared back to life in the early months of 2024. Data from CoinATMRadar reveals a remarkable surge in installations, with 1,469 new ATMs deployed in just the first three months of the year, outpacing the over 3,000 removals witnessed during the same period in 2023.

Bitcoin Bull Market Triggers ATM Adoption Boom

Mintz anticipates an industry-wide ATM rebound fueled by Bitcoin's renewed rally, which has already surpassed its previous all-time high twice in March. Drawing on lessons from previous bull markets, Mintz observes that crypto adoption typically surges "later in the cycle," coinciding with a surge in FOMO. This increased adoption inevitably translates into a surge in Bitcoin ATM usage.

"The adoption rate is really helpful because if more people are buying Bitcoin, then a portion of those are likely using Bitcoin ATMs," Mintz explains.

Halving to Spark FOMO Frenzy and ATM Growth

While Bitcoin ATM installations have been climbing, Mintz highlights a decline in the number of ATM operators over the past 18 months. The bankruptcy of Coin Cloud, once the market leader with 5,000 ATMs, dealt a major blow to the industry. Mintz believes many other smaller operators have also struggled and exited the market quietly.

The industry shakeout accelerated following the collapse of crypto exchange FTX in November 2022, which sent shockwaves through the crypto market.

Despite these challenges, Bitcoin Depot remained resilient. The company's fourth-quarter and full-year 2023 results, released on March 25, showed a 7% year-over-year increase in full-year revenues to $689 million, although net income declined by 54% to $1.6 million.

Bitcoin Depot's ambitious expansion plans include acquiring 900 ATMs for installation in the first quarter of 2024 and deploying 940 ATMs in convenience stores across 24 US states.

Bitcoin ETF Impact on ATMs Minimal

According to CoinATMRadar, the US dominates the global Bitcoin ATM market, accounting for nearly 83% of the world's ATMs, with over 30,600 machines. The recent approval of spot Bitcoin exchange-traded funds (ETFs) in the US has sparked speculation about their potential impact on Bitcoin ATMs.

Mintz, however, remains unfazed by the ETF launch. He believes Bitcoin ATMs cater to a distinct customer base, primarily comprising underbanked or unbanked individuals who transact primarily in cash. In contrast, Bitcoin ETF buyers tend to be more affluent individuals with brokerage accounts.

"We view it as a totally different customer base," Mintz says. "Our customer base is not that likely to have a brokerage account or a broker."

ETFs as Catalyst for Bitcoin ATM Growth

Instead, Mintz believes that ETFs, by driving Bitcoin's price higher, could ultimately boost Bitcoin ATM usage as mainstream adoption accelerates.

"If adoption increases, we think it likely translates to increased usage of Bitcoin ATMs," Mintz says. "So in the grand scheme of things, I think it is way more helpful to us in our industry than it is in terms of impacting us in a negative way."

Conclusion

As the Bitcoin halving approaches, the crypto community is abuzz with anticipation. Industry experts predict a surge in Bitcoin ATM installations, fueled by FOMO and the coin's renewed bull market momentum. While the industry has faced challenges in recent months, leading operators like Bitcoin Depot remain optimistic about the future. They believe that Bitcoin ATMs will play a vital role in mainstream crypto adoption, providing an accessible and convenient way for individuals to buy and sell digital assets.