• ranians are moving Bitcoin into personal wallets as the rial collapses and internet restrictions intensify.
  • On-chain data shows crypto usage surging during unrest, reinforcing Bitcoin’s role as a crisis hedge.

Iran is facing a severe crisis right now. People are protesting across the country, and in return, the government shut down the internet nationwide. This reflects the Iranian rial collapsing to a record low, losing almost all its value against major currencies. Access to the global financial system is heavily restricted. So people in Iran are looking for the alternate way to protect their money. 

Bitcoin Emerges as a Financial Lifeline for Iranians Amid Internet Shutdown and Currency Collapse

According to Chainalysis, people started withdrawing bitcoin from the exchanges and moving it to their personal wallets right after the internet shutdown began. This shows that they are not trusting exchanges and the government and are taking bitcoin directly into their own custody. Crypto is becoming one of the survival tools for the Iranians right now, apart from other financial firms like banks.

Many people see Bitcoin as a safer place to store value and an alternative savings protection from high inflation. Bitcoin can be stored privately and accessed later outside the banking system. At this time of crisis, Bitcoin is becoming one of the major financial backup tools. 

As per the Chainalysis report, the Islamic Revolutionary Guard Corps (IRGC), which was the military group, is involved in crypto and controls half of the crypto activity. Iran’s total crypto ecosystem has reached $7.78 billion in 2025, and recently, IRGC wallets have been linked to a $1 billion transaction from two UK-based exchanges. So crypto is playing a vital role for both governments and citizens for different reasons. 

This situation shows people believe in Bitcoin when their local currency fails during the crisis and prefer self-custody of their Bitcoin. Internet shutdowns often increase crypto withdrawals and can bypass the restrictions. 

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