Iran Turns to Crypto Amid Collapsing Economy, Protests

Crypto usage in Iran has spiked amid the country’s mass protests, with a surge of Iranians withdrawing Bitcoin to preserve value amid instability, according to Chainalysis.

Protests in Iran began around Dec. 28 over worsening economic conditions, after the Iranian rial hit record lows against the US dollar. Demonstrations escalated nationwide, with Iran’s regime responding by cutting internet access, carrying out mass arrests, and reportedly killing thousands.

Chainalysis said in a report on Thursday that Iran’s crypto ecosystem hit $7.78 billion in 2025, which accelerated amid the ongoing unrest with a substantial increase in the number of daily crypto transfers and the amounts transacted.

“Most telling is the surge in withdrawals from Iranian exchanges to unattributed personal Bitcoin wallets. This surge suggests Iranians are taking possession of Bitcoin at a markedly higher rate during protests than they were beforehand,” it said.

“This behavior represents a rational response to the collapse of the Iranian rial, which has lost nearly all of its value, rendering it effectively worthless against major currencies like the euro.”

Chainalysis noted that Iran’s government has also turned to crypto, with the Islamic Revolutionary Guard Corps’ (IRGC) crypto activity accounting for half of the total crypto ecosystem in the fourth quarter of 2025, with IRGC-associated addresses receiving more than $3 billion in total last year. 

Crypto part of the resistance

Chainalysis said Bitcoin’s (BTC) role during the unrest in Iran isn’t just confined to capital preservation; it’s also become “an element of resistance, providing liquidity and optionality in an increasingly restricted economic environment.”

“Unlike traditional assets that are illiquid and often subject to government control, BTC’s censorship-resistant and self-custodial nature offers financial flexibility — particularly valuable in a situation where individuals may need to flee or operate outside government-controlled financial channels.”

Chainalysis said it has found other regions experiencing “war, economic turmoil, or government crackdowns” have also seen increased Bitcoin withdrawals during times of instability.