Iranians Massively Withdraw Bitcoin During Protests, Rial Plunge Drives Safe-Haven Demand

Odaily News During the anti-government protests erupting across Iran and amidst government-imposed internet blackouts, local residents are accelerating the transfer of Bitcoin into personal wallets. Blockchain analytics firm Chainalysis points out that from the start of the protests on December 28, 2024, to the internet disruption on January 8, there was a significant increase in BTC withdrawal transactions from local Iranian exchanges to unknown personal wallets. This indicates that people are self-custodying Bitcoin at a higher frequency during periods of social unrest.

Chainalysis believes this behavior is closely related to the sharp depreciation of the Iranian national currency, the Rial. Data shows the Rial's exchange rate against the US dollar plummeted from around 420,000 to over 1.05 million in a short period, leading to a rapid loss of purchasing power. Against this backdrop, Bitcoin, with its characteristics of decentralization, censorship resistance, and cross-border transferability, is seen as a crucial tool for hedging against currency collapse and economic instability.

The report also notes that this trend aligns with patterns observed in other regions globally experiencing war, economic crises, or high-pressure government policies. Furthermore, Chainalysis disclosed that addresses associated with Iran's Islamic Revolutionary Guard Corps (IRGC) accounted for over 50% of the total crypto assets received in Iran during the fourth quarter of 2025, with on-chain processed amounts exceeding $3 billion for the full year. (CoinDesk)