Protests Escalate, Rial Plummets, Iranian Citizens Rush to Withdraw Cryptocurrency

According to reports, amidst ongoing protests and deepening economic crisis in Iran, Iranian citizens are speeding up the process of withdrawing Bitcoin from exchanges to personal wallets in order to avoid inflation and financial control risks.

Blockchain analysis company Chainalysis pointed out that from December 28, 2025, when protests erupted, to January 8, during Iran's internet shutdown, there was a significant increase in BTC transactions being transferred from Iranian domestic exchanges to unknown personal wallets, indicating that people are more inclined to directly control their crypto assets during turbulent times.

Analysis suggests that this behavior is a rational response to the collapse of the Iranian currency, the Rial (IRR). Data shows that the Rial to USD exchange rate has plummeted from around 42 at the end of last year to over 1,050 this week, with purchasing power on the brink of collapse. Bitcoin, with its decentralized, censorship-resistant, and cross-border transfer capabilities, is seen as a key tool to combat currency devaluation and political uncertainty, providing liquidity and choice for the people.

Chainalysis also noted that this phenomenon aligns with a global trend: during times of war, economic turmoil, or government crackdowns, people often turn to cryptocurrencies to protect their assets. It is worth noting that Iranian official forces are also increasing their use of cryptocurrencies. Reports indicate that wallets associated with the Islamic Revolutionary Guard Corps (IRGC) accounted for over 50% of Iran's cryptocurrency activity receipts in the fourth quarter of 2025, with an annual on-chain transaction volume exceeding $3 billion (potentially still underestimated).

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