Iranians Turn to Bitcoin as Currency Collapses and Protests Spread

TLDR

• Iran’s crypto ecosystem reached $7.8 billion in 2025 as protests erupted over economic collapse and the rial currency hitting record lows
• Chainalysis data shows Iranians withdrew Bitcoin from exchanges to personal wallets at higher rates during protests that began in late December
• The Iranian rial collapsed from 42 per USD in late December to over 1,050 per USD this week
• The Islamic Revolutionary Guard Corps handled over $3 billion in crypto transactions in 2025, accounting for 50% of Iran’s total crypto activity in Q4
• Around 7 million Iranians out of 92 million total population are estimated to be crypto users

Iran’s cryptocurrency ecosystem has grown to $7.8 billion in 2025 as the country faces widespread protests and economic crisis. The surge in crypto activity comes as the Iranian rial has collapsed to historic lows against the US dollar.

Street demonstrations began on December 28 across multiple Iranian cities. Protesters gathered in response to worsening economic conditions and rampant inflation. The Iranian government responded by cutting internet access and cracking down on demonstrators.

Bitcoin Withdrawals Surge During Unrest

Blockchain intelligence firm Chainalysis tracked a sharp increase in cryptocurrency withdrawals from Iranian exchanges between late December and January 8. Iranians moved Bitcoin from exchanges to personal wallets at rates higher than before the protests began.

The data shows both the number of daily crypto transfers and transaction amounts increased during the unrest. Chainalysis said this pattern represents a rational response to the currency collapse. The Iranian rial has dropped from roughly 42 per USD at the end of December to over 1,050 per USD this week.

The rial has lost nearly all its value against major currencies like the euro. This collapse has eroded the purchasing power of Iranian citizens. Bitcoin offers an alternative for people seeking to preserve their wealth.

TRM Labs tracked approximately $3.7 billion in total crypto flows in Iran between January and July 2025. The country’s crypto ecosystem reached $7.78 billion for the full year 2025. Statista estimates around 7 million people out of Iran’s 92 million population are crypto users.

Government Forces Also Using Crypto

The Islamic Revolutionary Guard Corps has increased its crypto activity substantially. IRGC-associated addresses accounted for over 50% of Iran’s total crypto ecosystem in the fourth quarter of 2025. These addresses received more than $3 billion in total throughout 2025.

Chainalysis notes this figure is likely underestimated. The firm only tracks wallets that have been sanctioned by the US and Israel. The actual amount of IRGC crypto activity may be higher.

Bitcoin’s decentralized nature makes it difficult for governments to control or seize. Users can hold Bitcoin in personal wallets without needing banks or other intermediaries. This makes the cryptocurrency useful for people operating outside government-controlled financial channels.

Chainalysis observed similar patterns in other regions facing war, economic turmoil, or government crackdowns. People in unstable situations often increase Bitcoin withdrawals during times of crisis. The cryptocurrency provides liquidity and the ability to move funds across borders.

The trend in Iran follows this global pattern. When governments restrict traditional financial systems, citizens turn to cryptocurrencies. Chainalysis said cryptocurrency will likely remain an important tool for Iranians seeking financial sovereignty as economic volatility continues.

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