Protests, inflation and local currency collapse in Iran have prompted citizens to turn to Bitcoin as a hedge against inflation. Iranians have been withdrawing BTC from exchanges to their personal wallets.
Blockchain intelligence firm Chainalysis observed a significant shift in the on-chain behavior from December 28, 2025, to January 8, 2026.
When Iran’s blanket internet blackout began early this month, the number of daily transfers to personal wallets increased, Chainalysis said.
“This surge suggests Iranians are taking possession of Bitcoin at a markedly higher rate during protests than they were beforehand.”
Iranians Respond to Rial Collapse
Iranian currency – rial – sank to an all-time low, nearly losing all of its value against major currencies like the euro. Since late 2025, the currency has continued to weaken sharply in the open market with viral claims that it has fallen to ‘zero’ against USD.
As reported earlier, the country has also been offering to sell advanced weapons systems, including missiles and warships, to foreign governments for crypto.
For many Iranians, digital assets have become an “element of resistance,” providing liquidity in the restricted economic environment.
“The pattern of increased BTC withdrawals during times of heightened instability reflects a global trend we’ve observed in other regions experiencing war, economic turmoil, or government crackdowns,” Chainalysis report noted.
Comparison of daily average withdrawals pre and post protests. Source: ChainalysisIRGC’s Dominance Within Iran’s Crypto Landscape
Chainalysis noted that apart from ordinary Iranians, the Islamic Revolutionary Guard Corps (IRGC), a multi-service primary branch of the Iranian Armed Forces, has also extensively pivoted to crypto.
The IRGC’s on-chain activity showed 50% of Iran’s crypto ecosystem in Q4 2025, reflecting its dominance in the nation’s economy.
“Iran’s crypto ecosystem reached over $7.78 billion in 2025, having grown at a notably faster pace compared to the year prior,” the report added.
Last week, two UK-based crypto exchanges processed approximately $1 billion in transactions linked to the IRGC.
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