Iranians Turn to Bitcoin as Inflation and Unrest Intensify
Economic pressure and political unrest in Iran are driving a quiet but powerful shift toward Bitcoin. As protests escalate, inflation spirals, and the national currency collapses, more Iranians are pulling BTC off exchanges and moving it into personal wallets, treating crypto as both a hedge and a survival tool.
New blockchain data suggests this is not speculation—it’s a direct response to instability on the ground.
On-Chain Data Reveals a Clear Pattern
According to blockchain intelligence firm Chainalysis, Iranian Bitcoin behavior changed sharply between December 28, 2025, and January 8, 2026. During this period, the number of daily BTC transfers from exchanges to self-custody wallets surged.
The spike became even more pronounced when Iran imposed a blanket internet blackout earlier this month.
“This surge suggests Iranians are taking possession of Bitcoin at a markedly higher rate during protests than they were beforehand,” Chainalysis noted.
The trend mirrors behavior seen in other regions facing war, economic collapse, or heavy-handed government crackdowns—when trust in institutions fades, people move assets they can personally control.
The Rial’s Collapse Pushes Citizens Toward Crypto
At the center of the shift is Iran’s collapsing currency. The rial has sunk to an all-time low, losing nearly all of its value against major currencies like the euro. Since late 2025, its decline has accelerated in open markets, with viral claims suggesting it has effectively fallen to “zero” against the U.S. dollar.
For ordinary Iranians, this erosion of purchasing power has made holding cash increasingly untenable. Bitcoin and other digital assets, by contrast, offer portability, censorship resistance, and access to global liquidity—qualities that matter deeply in a restricted economy.
Some officials have even acknowledged crypto’s role, with Iran reportedly offering advanced weapons systems for payment in digital assets, highlighting how deeply crypto has penetrated the country’s economic reality.
Bitcoin as an “Element of Resistance”
For many citizens, crypto is no longer just an investment—it has become an “element of resistance.” In an environment shaped by sanctions, capital controls, and limited access to global markets, digital assets provide a financial escape valve.
Chainalysis emphasized that the pattern unfolding in Iran fits a broader global trend: during periods of heightened instability, people gravitate toward assets they can self-custody and move across borders without permission.
The IRGC’s Expanding Role in Iran’s Crypto Economy
Chainalysis also highlighted a more complex—and controversial—dimension of Iran’s crypto landscape. The Islamic Revolutionary Guard Corps (IRGC) has significantly expanded its crypto activity, accounting for roughly 50% of Iran’s on-chain ecosystem in Q4 2025.
Overall, Iran’s crypto market surpassed $7.78 billion in 2025, growing faster than the previous year. Last week alone, two UK-based crypto exchanges reportedly processed around $1 billion in transactions linked to the IRGC, underscoring the scale of institutional involvement.
This dual reality—grassroots adoption by citizens alongside large-scale use by state-linked actors—illustrates how crypto has become deeply embedded in Iran’s economy.
A Familiar Crypto Story, Playing Out Again
Iran’s situation reinforces a recurring pattern in global crypto adoption. When currencies fail, access is restricted, or trust in institutions breaks down, Bitcoin adoption often accelerates—not because of hype, but necessity.
For Iranians navigating protests, inflation, and a collapsing rial, Bitcoin represents something simple yet powerful: control. Whether this trend continues will depend on political developments and enforcement, but for now, on-chain data shows a population quietly voting with its wallets.