Bitcoin Becomes Lifeline as Iran Faces Currency Collapse

• Iranians use Bitcoin as the economic crisis worsens and the official fiat currency, the rial fall to an all-time low.
• Bitcoin sees massive adoption from global retail and institutional investors despite price volatility.

Iranians are increasingly moving their Bitcoin (BTC) assets from exchanges to personal wallets. Their decision is a response to a potential currency collapse, fueled by the ongoing economic crisis accompanied by street demonstrations.

Iranians Run to Bitcoin for Economic Safety

The recent street protests against the Islamic Republic government began on December 28, 2025, according to a CNBC report. Protesters are demanding fundamental change and transition from the Islamic Republic system to a new government that respects human rights.

In opposition, the government has clamped down on street protests, deepening the economic crisis in Iran. As inflation woes rose, locals took direct custody of their Bitcoin due to the cryptocurrency’s decentralized and censorship-resistant appeal.

Blockchain intelligence firm Chainalysis revealed that BTC withdrawals from Iranian exchanges to unknown personal wallets have increased. The timeframe for this spike is from the start of the protests to January 8, when Iran imposed an internet blackout.

According to Chainalysis, this suggests Iranians are securing their Bitcoin at a higher rate during protests. Chainalysis describes the Bitcoin shift as a rational response to the collapse in Iran’s currency, the rial (IRR).

The rial has fallen roughly 42 per USD at the end of December to over 1,050 this week. This massive slide has rendered the fiat currency worthless.

Conversely, Bitcoin, the peer-to-peer decentralized money, is widely seen as a powerful hedge against collapsing paper currencies and economic crises. 

Bitcoin has a censorship-resistant nature and can be moved across borders without interference from banks or governments. These features make it especially vital during political unrest, as Iranians face now.

The shift towards Bitcoin by Iran is consistent with the global patterns. People often turn to cryptocurrencies when they are faced with government opposition.

In a previous article, we discussed that Venezuelans sought alternatives in cryptocurrencies after the local currency, the bolivar, fell by over 70%.

Additionally, we mentioned earlier that Bitcoin is the first choice considered when institutions and individuals are moving from the dollar.

Why Bitcoin?

Unlike fiat currencies, Bitcoin has a fixed supply, which makes it appealing to those seeking long-term protection against economic instability.

In addition, governments cannot use Bitcoin as a tool of control like they can with fiat currencies. 

Anyone with internet access can send or receive Bitcoin, regardless of their location globally. This uncensorable nature is one reason why Iranians are now stacking their BTC stash in personal wallets.

Across the globe, Bitcoin is gaining widespread attention.  In a recent update, we covered that Morgan Stanley filed an S-1 to launch a spot Bitcoin ETF, challenging BlackRock and Fidelity.

Furthermore, Walmart recently enabled Bitcoin payments at checkout through OnePay Cash. This integration allows instant crypto payments to over 150 million customers who shop at Walmart’s physical stores and online. 

As regards BTC price, the leading coin is currently facing volatility amid a broader bearish market. Within the past day, BTC dropped 1.5% to $95,567.