Iranian cryptocurrency users significantly increased Bitcoin withdrawals during the recent protests, as citizens moved their funds off exchanges amid political unrest and economic pressure. Data from Chainalysis indicates a broad rise across all withdrawal sizes, suggesting a shift toward self-custody rather than speculative trading.
The increase in withdrawals accelerated during the protest period leading up to internet blackouts, which occurred between late December and early January. Compared to the pre-protest period, both the value and the number of outbound Bitcoin transfers saw a climb, with the strongest growth observed among small and mid-sized users. This pattern points to defensive financial behavior rather than large-scale capital flight by a small elite.
The data highlights that Bitcoin acted as a financial escape valve during moments of uncertainty. Users prioritized control over access, especially as banking services and connectivity risks increased.
Smaller Transfers Drive the Surge
Large withdrawals, specifically those under $10,000, posted the sharpest gains. The average daily dollar withdrawals in this category jumped more than 230 percent during the protest window. Concurrently, the number of these transfers rose by over 260 percent, according to Chainalysis data.
Medium-sized withdrawals, defined as those under $1,000, also expanded rapidly. The average value of these transfers increased by more than 220 percent, while the number of transactions climbed over 120 percent. This growth suggests that everyday users, not just high-net-worth holders, turned to Bitcoin as conditions deteriorated.
Even the smallest withdrawals, under $100, increased meaningfully. While the dollar value remains modest, the number of transactions rose by nearly 80 percent, reflecting widespread participation and a push toward personal wallets across various income levels.
Protests and Currency Pressure Shape Behavior
The timing of these withdrawal increases aligns with renewed protests and ongoing pressure on the Iranian rial, which has faced repeated devaluation episodes. As trust in traditional financial channels weakened, Bitcoin offered an alternative that allowed users to move value without relying on local banks.
Very large withdrawals, those below $100,000, also increased, though at a slower pace than the smaller bands. Their average daily value rose approximately 30 percent, while transaction counts grew more than 50 percent. This indicates broader participation rather than concentrated outflows by a few entities.
Overall, the data demonstrates a clear behavioral shift. During periods of unrest, Iranian crypto users reduced their exposure on exchanges and favored direct control of their assets. Bitcoin, in this context, functioned less as a speculative instrument and more as a tool for financial continuity when access and stability came into question.
Protests, Currency Slide, and Internet Blackout Reshape Daily Life in Iran
Iran entered 2026 with nationwide protests that began in late December after prices surged and the rial fell to record lows on the open market. Demonstrations that initially started with shop closures and rallies in Tehran’s Grand Bazaar spread to multiple provinces. Officials blamed the unrest on outside forces and tightened security in major cities.
Concurrently, Iran imposed a near-total internet shutdown starting January 8, cutting off many connections to the outside world and limiting reporting and coordination. Press freedom groups and researchers stated that the blackout strengthened the state’s information chokehold as protests continued, while technical monitors described a nationwide drop in connectivity.
Human rights organizations reported a widening crackdown that included mass arrests and the use of lethal force in several cities. They also warned that the internet shutdown made it harder to document abuses. Amnesty International announced it was investigating reports of intensified unlawful force following the shutdown and documented killings in multiple provinces in early January.