Key Developments in Bitcoin Activity
Iranian citizens have rapidly withdrawn Bitcoin from local exchanges to personal wallets following the commencement of internal protests on December 28, 2025, amidst a severe economic crisis and significant currency devaluation. This trend underscores Bitcoin's perceived role as a hedge against inflation and financial censorship, aligning with global patterns of increased self-custody during periods of financial instability.
Bitcoin Withdrawals Surge: A Response to Iran's Financial Crisis
Amid escalating tensions and currency devaluation, Iranian citizens are increasingly withdrawing Bitcoin from domestic exchanges. This surge, recorded by Chainalysis, aligns with protests starting on December 28, 2025, through the internet shutdown on January 8, 2026. The decline of the Iranian Rial against the US Dollar, from approximately 42 to over 1,050, has forced citizens to seek alternatives. These actions underscore a shift towards direct control over crypto assets amid nationwide unrest.
The macroeconomic implications are profound. Bitcoin's decentralization, censorship resistance, and cross-border transfer capabilities make it a vital tool in combating devaluation and preserving financial liquidity. The collapse of the Iranian Rial has resulted in increased crypto adoption, with local wallets handling high transaction volumes. Official measures show increased crypto activity by the Iranian Revolutionary Guard Corps (IRGC), which comprised over 50% of the country's crypto inflows in Q4 2025, with an on-chain volume exceeding $3 billion. This phenomenon emphasizes the complex relationship between government operations and cryptocurrency use in financial strategy.
Behavior [of increased BTC withdrawals] is a rational response to currency collapse, providing censorship-resistant financial flexibility.
Bitcoin as a Safe Haven: Historical Context and Regulatory Outlook
The pattern of citizens turning to Bitcoin during economic crises mirrors behaviors observed during historical unrest in countries like Venezuela and Turkey, where similar surges in crypto activity were recorded amid intense political and financial strain.
The Coincu research team highlights the potential for increased regulatory attention on crypto in Iran. Cross-border transferability may attract new policies focused on managing crypto assets during financial instability. Future technological advancements may further solidify Bitcoin's role in nations experiencing economic upheaval.