Crypto ATMs To Reawaken After Bitcoin ‘FOMO’ Explodes, Says Top Executive
Bitcoin ATMs might see a global acceleration in installations after the Bitcoin halving event happens. Historical data shows that it is a period when crypto FOMO (fear of missing out) normally increases, as highlighted by Bitcoin Depot CEO Brandon Mintz.
In 2023, crypto ATM installations recorded the first yearly drop in over 10 years, owing to a bear market possibly worsened by the collapse of many crypto companies.
Nonetheless, Mintz said that 2024 has already started with a bang, with 1,469 crypto ATMs already installed in the first three months of the year, compared to over 3,000 switched off by around the same time last year, according to CoinATMRadar data.
The crypto market is now positive since it continues to see significant growth in kiosk count. Mintz is convinced there will be an industry-wide ATM rebound with Bitcoin already back above $70,000, and having already beaten its all-time high twice in March.
In previous bull markets, Mintz said that later in these bull cycles, mostly when FOMO starts happening, is the time crypto adoption intensifies and attracts more customers. He added:
“The adoption rate is really helpful because if more people are buying Bitcoin, then a portion of those are likely going to Bitcoin ATMs.”
Those users who are not going for the ATMs are using Finance Phantom, an artificial intelligence crypto trading bot, to trade in the crypto market.
In the past, more crypto adoption happened later after the halving since that is when the price increases and the FOMO phase kicks off.
While the ATM count has increased significantly, Mintz alleges that in the past 18 months, the number of ATM operators has plunged. One notable case was the 5,000 ATM-strong operator Coin Cloud, which filed for bankruptcy in February 2023. Many other operators were struggling and closed down than was reported publicly.
The drop happened rapidly after the FTX crypto exchange crumbled in November 2022 and pulled the entire crypto market down with it.
Bitcoin Depot’s Q4 and full 2023 results published on March 25 had full-year revenues up 7% year-on-year to reach $689 million, although net income plunged by 54% to $1.6 million.
The firm also acquired 900 ATMs to install in Q1 2024 and has plans to install 940 ATMs in convenience stores in 24 US states.
According to CoinATMRadar, Bitcoin Depot shares the market with a small number of other operators.
Spot Bitcoin ETFs Do Not Bother Market Dynamics
Of the active 37,001 crypto ATMs globally, the United States hosts almost 83% of them, with at least 30,600, per CoinATMRadar.
In January 2024, the United States also approved spot Bitcoin exchange-traded funds (ETFs), which some have praised as an adoption catalyst for institutional investors and retail traders looking to join the Bitcoin market.
Mintz believes that ETFs will not have major impacts on Bitcoin ATMs since it is a different customer base altogether. He said that most of his company’s clients use cash to invest in Bitcoin since they are unbanked or underbanked.
On the other hand, the Bitcoin ETF buyers are high-income individuals with brokerages and brokers. Nonetheless, Mintz believes that the ETFs pushing Bitcoin’s price higher might mean increased ATM usage as the Bitcoin adoption rate increases.
When the adoption rate increases, it might translate to more people using Bitcoin ATMs. So in the long term, ETFs seem to benefit the market since they play an integral role in increasing the rate of Bitcoin adoption.
