As crypto assets establish strong recovery days ahead of the 2024 Bitcoin halving, the key industry players are optimistic that their investment will generate considerable gains. The strong upward trajectory of Bitcoin demonstrates that the entire BTC ecosystem will blossom.
A statement from the chief executive of Bitcoin Depot, Brandon Mintz, stated that the impressive growth within the Bitcoin ecosystem will impact the increased installation of crypto ATMs. The executive explained that when BTC breached the $70K psychological resistance level, the investors demonstrated their fear of missing out (FOMO).
Resurgence of Crypto ATMs
Reflecting on the statistics of the number of crypto ATMs installed in 2023, the CEO noted that the bearish market outlook impacted the decline in installation. According to CoinATMRadar, around 3000 crypto ATMs were uninstalled last year.
The high number of uninstalled Bitcoin ATMs created worry among crypto enthusiasts. Mintz noted that in 2024, around 1469 crypto ATMs have been installed. The executive remains hopeful that the number of crypto kiosks will continue to increase.
The CEO noted that between March 1 and 27, around 400 crypto ATMs have been established. Mintz predicted that more crypto ATMs would be installed as Bitcoin prices increased.
A review of the previous bull market illustrated that the crypto adoption increased as investors demonstrated FOMO. In the last cycle of the 2021 crypto bull market, the number of investors increased significantly.
The CEO pointed out that the adoption rate plays a vital role in determining the potential buyers of Bitcoin. He argues that increased crypto adoption indicates increased activities over the Bitcoin ATMs.
Mintz anticipates that after Bitcoin halving, the activities of the crypto ATMs are expected to increase. In the previous Bitcoin halving, it was observed that the price of crypto assets established a strong rally shortly after the halving.
Bitcoin FOMO to Push Crypto ATM Usage
The report indicates that when the price of crypto assets reached its all-time high, investors rushed to invest in them due to FOMO pressure. According to Mintz, 2023 was an unfavorable year for the Bitcoin operators.
He noted that the increase in crypto kiosks forced fast-paced Bitcoin ATM operators such as Coin Cloud to exit the market. He said the bearish crypto market exposed most ATM operators to business issues.
The CEO regretted the implosion of the Bahamian exchange FTX the crypto sector came to a standstill. The aftermath of FTX forced most crypto firms to explore new opportunities.
The Bitcoin Depot saw its revenue reach $689 million, a 7% increase, while the net income dropped by 54% to $1.6million in 2023. The sudden decline in Bitcoin Depot forced the crypto ATM provider to seek new opportunities.
A review of the Bitcoin Depot website demonstrated that the company installed 900 crypto ATMs in Q1 of 2024. Consecutively, 940 ATMs will be installed across 24 states in the US.
Factors Contributing to High Crypto Adoption
The exciting development of Bitcoin Depot positions the firm among the best-performing crypto operators competing with Coinflip and Bitstop. The resurgence of crypto ATMs came months after the US Securities and Exchange Commission (SEC) approved the Bitcoin exchange-traded funds (ETFs).
Market critics argued that the approval of the Bitcoin ETFs could hurt the growth of the crypto ATM industry. Commenting on the impact of Bitcoin ETF on the crypto ATMs, Mintz vowed to remain resilient despite the changes in the crypto ecosystem.
The CEO highlighted that the Bitcoin ETF and crypto ATMs fall under separate categories. The official confessed that the crypto ATMs target unbanked individuals while the Bitcoin ETFs serve wealthy investors dealing with brokerage and broker firms.
The CEO argues that most Bitcoin Depot customers generate $90,000 to $100,000 annually. He predicts that the increased adoption of Bitcoin ETFs will propel the prices of crypto assets higher, which will trigger an increase in ATM usage. The executive believes that the ongoing development in crypto will push for the mainstream adoption of Bitcoin.
