Iranians Withdraw Bitcoin Amid Protests and Economic Crisis as Rial Plummets

Amid rising protests, rampant inflation, and the devaluation of the national currency, the rial, many Iranians are increasingly turning to Bitcoin as a safeguard against economic instability. Recent insights from blockchain intelligence firm Chainalysis reveal a notable rise in Bitcoin withdrawals by Iranians, especially during times of unrest, as citizens seek to protect their assets in a challenging financial landscape.

Key Takeaways

Iranians are withdrawing Bitcoin to protect against the collapsing rial amid ongoing protests and inflation.
A significant increase in Bitcoin transfers to personal wallets was observed during recent internet blackouts in Iran.
The rial has hit record lows, losing value against major currencies like the euro.
The Islamic Revolutionary Guard Corps (IRGC) is a major player in Iran’s crypto landscape, accounting for a large share of the country's crypto activity.

Iranians Bitcoin

Iranians Respond to Rial Collapse

The Iranian currency, known as the rial, has diminished in value dramatically, reaching unprecedented lows against leading currencies such as the euro. Since late 2025, the currency's decline has accelerated, drawing attention to claims that its value may have dropped to ‘zero’ when compared to the US dollar.

In response to these economic challenges, Iran has also approached foreign governments to sell advanced weaponry, including missiles and warships, in exchange for cryptocurrency.

For many citizens, digital assets like Bitcoin represent a form of “resistance,” allowing them to maintain liquidity in a severely restricted economy.

Chainalysis noted that the trend of increasing Bitcoin withdrawals during periods of instability aligns with similar patterns seen in other parts of the world facing war, economic crises, or governmental oppression.

Iran’s Crypto Landscape

IRGC’s Dominance in Iran’s Cryptocurrency Landscape

The report from Chainalysis also highlights the significant involvement of the Islamic Revolutionary Guard Corps (IRGC), a key military branch in Iran, in the cryptocurrency space. The IRGC accounted for 50% of the on-chain activity in Iran's crypto ecosystem during the fourth quarter of 2025, showcasing its substantial influence on the national economy.

Furthermore, Iran's cryptocurrency ecosystem has grown to over $7.78 billion in 2025, marking a rapid expansion compared to the previous year.

Recently, two UK-based cryptocurrency exchanges facilitated transactions totaling around $1 billion that were linked to the IRGC's activities.