Cryptocurrency usage in Iran has seen a significant spike, coinciding with the country's widespread protests. A notable increase in Iranians withdrawing Bitcoin has been observed, as they seek to preserve value amidst escalating economic instability, according to insights from Chainalysis.
The protests in Iran initially began around December 28, stemming from worsening economic conditions. This period saw the Iranian rial reach record lows against the US dollar. The demonstrations subsequently intensified across the nation, prompting a strong response from Iran's regime, which included cutting internet access, conducting mass arrests, and reportedly causing thousands of casualties.
Chainalysis reported in a recent analysis that Iran's cryptocurrency ecosystem reached a value of $7.78 billion in 2025. This ecosystem experienced accelerated growth amidst the ongoing unrest, marked by a substantial increase in both the daily volume of crypto transfers and the total amounts transacted.
The report highlighted a particularly telling trend: a surge in withdrawals from Iranian exchanges to personal, unattributed Bitcoin wallets. This surge indicates that Iranians are acquiring and holding Bitcoin at a significantly higher rate during the protests compared to the period preceding them.
“This behavior represents a rational response to the collapse of the Iranian rial, which has lost nearly all of its value, rendering it effectively worthless against major currencies like the euro.”
Chainalysis also noted that Iran's government has engaged with cryptocurrency. The Islamic Revolutionary Guard Corps’ (IRGC) crypto activity constituted half of the total crypto ecosystem in the fourth quarter of 2025. Addresses associated with the IRGC received over $3 billion in total throughout the past year.
Crypto as a Tool of Resistance
Chainalysis stated that Bitcoin's (BTC) role during the unrest in Iran extends beyond mere capital preservation. It has also become "an element of resistance, providing liquidity and optionality in an increasingly restricted economic environment."
“Unlike traditional assets that are illiquid and often subject to government control, BTC’s censorship-resistant and self-custodial nature offers financial flexibility — particularly valuable in a situation where individuals may need to flee or operate outside government-controlled financial channels.”
The analysis from Chainalysis indicated that other regions experiencing similar conditions, such as war, economic turmoil, or government crackdowns, have also witnessed increased Bitcoin withdrawals during periods of instability.
Cryptocurrency's Enduring Importance
TRM Labs tracked approximately $3.7 billion in total crypto flows within Iran between January and July 2025. Concurrently, an estimated seven million individuals, out of Iran's population of 92 million, are users of cryptocurrency, according to data from Statista.
The Chainalysis team concluded that as sanctions pressure and international condemnation intensify, and Iran's economic volatility persists, cryptocurrency is likely to remain a vital tool for Iranians seeking financial sovereignty.