Amid economic collapse, Iranians rush to transfer Bitcoin to personal wallets

Iran is experiencing an economic crisis, and the local population is taking radical financial self-rescue measures. As domestic protests and demonstrations escalate and the national currency depreciates further, Iranians are transferring Bitcoin from exchanges to personal wallets on a large scale, reflecting their loss of confidence in the traditional financial system and seeking refuge in digital assets. According to the latest data from blockchain analysis firm Chainalysis, this phenomenon is particularly evident from late 2025 to early 2026.

Rial Devaluation Crisis: Iranians’ Wealth Preservation Dilemma

Iran’s national currency, the Rial(IRR), is undergoing catastrophic devaluation. At the end of December 2025, the Rial to USD exchange rate was about 42:1, but by January 2026, just one month later, it had fallen to over 1050:1, a decline of up to 96%. This rapid devaluation has essentially wiped out the purchasing power of the Rial, with the savings of ordinary people nearly evaporating within weeks.

In this desperate economic situation, Iranians are turning to Bitcoin. As a decentralized asset with a fixed supply of 21 million coins, Bitcoin is widely regarded as an effective hedge against inflation and currency devaluation. Unlike easily devalued fiat currencies, Bitcoin is not controlled by any central bank and cannot be frozen or confiscated by the government, making it particularly attractive to Iranians facing an economic crisis. Currently, Bitcoin’s price has reached $90,000, and its stability in value compared to the continuous devaluation of the Rial is evident.

On-Chain Data Confirms: Iranians Are Extracting Large Amounts of Bitcoin

From the start of protests on December 28, 2025, until the Iranian government announced a shutdown on January 8, 2026, Chainalysis detected a clear trend: Bitcoin withdrawals from Iranian exchanges surged to unprecedented levels, with many users transferring BTC to anonymous personal wallets.

“The most notable thing is that there was a significant increase in transactions where Iranians withdrew Bitcoin from exchanges to personal anonymous wallets,” Chainalysis stated in its public report, “indicating that during the protests, Iranians were more actively involved in Bitcoin ownership than ever before.”

This behavior reflects a global pattern: when government pressure intensifies, people turn to cryptocurrencies. From conflict zones to countries experiencing economic collapse, and regions under political repression, Bitcoin’s censorship resistance and cross-border transfer capabilities have made it the last financial refuge during crises. The choices of Iranians are not isolated but confirm the value of cryptocurrencies amid global political and economic instability.

Hidden Involvement of Iranian Authorities

Interestingly, Iranian authorities themselves are heavily involved in cryptocurrency activities. According to Chainalysis data, blockchain addresses associated with the Islamic Revolutionary Guard Corps(IRGC) handled over $2 billion in crypto transactions in Q4 2025, accounting for more than 50% of Iran’s total crypto activity.

Chainalysis’s full data shows that IRGC-related addresses processed $3 billion in crypto transactions throughout 2025. This enormous figure is only the amount tracked by the company; the actual number could be higher, as the analysis only covers wallets sanctioned by the US and Israel. This indicates that under the dual pressures of economic sanctions and international isolation, Iran’s power structure is actively exploring cryptocurrencies as a tool to bypass international financial sanctions.

From ordinary citizens to authorities, all levels of Iranian society are discovering the value of cryptocurrencies together. When traditional monetary systems fail, political environments worsen, and economic sanctions tighten, Bitcoin and other decentralized assets are becoming an increasingly important financial option. Iran’s trajectory is playing out continuously on a global scale.