From Iran to Venezuela, Bitcoin and crypto have become a refuge and hedge against geopolitical tensions and massive devaluation of local currencies.
Amid the ongoing protest and reported internet shutdown in Iran, crypto activity has surged to a record $7.78 billion in 2025, according to blockchain analytics firm Chainalysis.
According to the firm, most of the spikes in Iran’s crypto activity corresponded to local and geopolitical tensions, including last year’s 12-day war with Israel.
And the current protest against the government and external pressure has gained momentum after the Iranian Rial, the local currency, collapsed against the U.S. dollar.
In other words, any savings in the local currency have become worthless. This has made Bitcoin [BTC] and other crypto assets the best way to get out of the local economy and preserve one’s little savings or remaining wealth on-chain.
Iranians opt for Bitcoin
Amid escalating social unrest, Chainalysis said Iranians have been actively sending large amounts of BTC to personal wallets. The report added,
“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.”
Notably, before the protests began in early December, large BTC withdrawals or transfers below $10K surged to 236% and increased to 262% during the protests.
Medium withdrawals below $1000 and small transfers below $100 also surged by 123% and 78%, respectively, during the civil unrest.
Overall, the triple-digit growth in BTC transfers to self-custody wallets reinforced its value proposition as an alternative, neutral, censorship-resistant asset in restricted economies.
Bitcoin can bypass traditional financial controls during upheavals or regional tensions and still help preserve wealth. The report added,
“This behavior represents a rational response to the collapse of the Iranian rial, which has lost nearly all of its value, rendering it effectively worthless against major currencies like the euro.”
Iran’s regime is heavy on crypto, too
But the sudden flight of citizens to personal wallets also underscored the risks posed by the regime. The Iranian military, the Islamic Revolutionary Guard Corps (IRGC), has also opted to fund its activities and evade sanctions through crypto.
Now, IRGC accounts for over 50% of the crypto value received, making local exchanges like Nobitex, targets of crypto hacks from Israeli actors.
As a result, Iranians moving BTC funds off exchanges makes sense from a wealth preservation and safety perspective.
Final Thoughts
- Bitcoin has become a relief and protest tool for Iranians after the local currency collapsed amid heightened civil unrest.
- BTC transfers to personal wallets surged to triple-digits as overall Iranian crypto activity hit $7.8 billion in 2025.
