Iran’s currency crash and civil unrest have pushed crypto use to new highs, with Bitcoin emerging as a go-to refuge for savers. According to blockchain analytics firm Chainalysis, crypto activity tied to Iran hit a record $7.78 billion in 2025. Much of that uptick lines up with episodes of domestic and regional instability — including last year’s 12-day conflict with Israel — and, most recently, widespread protests amid reported internet shutdowns. Why crypto? The Iranian rial has collapsed against major currencies, effectively erasing local savings. Faced with a rapidly depreciating currency and tightening financial controls, many Iranians are turning to Bitcoin and other digital assets as a way to preserve value and move wealth out of the domestic economy. Chainalysis highlights a sharp rise in transfers from exchanges to personal, self-custody wallets during the protests. The firm notes: “Most telling is the surge in withdrawals from Iranian exchanges to unattributed personal BTC wallets. This surge suggests Iranians are taking possession of Bitcoin at a markedly higher rate during protests than they were beforehand.” Key on-chain trends reported by Chainalysis - Transfers under $10,000 (often below AML/monitoring thresholds) rose 236% prior to the early-December protests and climbed to 262% during the unrest. - Medium transfers (below $1,000) increased by 123%, and very small transfers (below $100) rose 78%. - Overall, there was triple-digit growth in BTC flows to self-custody addresses, underlining Bitcoin’s perceived role as a neutral, censorship-resistant store of value in a restricted economy. Security and political complications The flight from exchanges is also tied to safety concerns. Chainalysis reports that the Islamic Revolutionary Guard Corps (IRGC) now accounts for over half of the crypto value received in Iran, with the group reportedly using digital assets to fund activities and evade sanctions. That visibility has made local platforms such as Nobitex targets for hacks and other attacks, reportedly including activity attributed to Israeli actors. These dynamics make self-custody a more attractive — if not risk-free — option for ordinary Iranian users. What it means The Iranian case is part of a broader pattern seen in countries facing currency collapse and geopolitical pressure (Venezuela being another well-known example): when local money fails, people increasingly turn to crypto. For many Iranians, Bitcoin is not a speculative bet but a practical tool to bypass traditional financial controls and protect whatever savings remain. Disclaimer: This article is informational and not investment advice. Trading or holding cryptocurrencies carries significant risk; readers should conduct their own research before making decisions. Source: Chainalysis; market exchange-rate data. Content rephrased from AMBCrypto © 2026. Read more AI-generated news on: undefined/news

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