Iranian Citizens Increase Bitcoin Withdrawals Amid Crisis

Iranian citizens rapidly withdrew Bitcoin from local exchanges to personal wallets after internal protests began on December 28, 2025, amid economic crisis and currency devaluation.

This trend highlights Bitcoin’s role as a hedge against currency collapse, with increased self-custody during financial instability, reinforcing global patterns observed during economic turmoil.

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. — Chainalysis Report

Bitcoin as a Safe Haven: Historical Context and Regulatory Outlook

Did you know? The pattern of citizens turning to Bitcoin during economic crises mirrors behaviors during historical unrest in countries like Venezuela and Turkey, where similar surges in crypto activity were observed amid intense political and financial strain.

Bitcoin currently trades at $95,714.02, with a market cap of $1.91 trillion, according to CoinMarketCap. Over the past 24 hours, Bitcoin’s price decreased by 0.56%, yet it posted a 5.16% gain over the last seven days. The cryptocurrency remains a key instrument in navigating economic turmoil, emphasizing Bitcoin’s adaptability and role in safeguarding assets during geopolitical tensions.

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.