Iran’s crypto market spikes 700% after strikes – Is this capital flight or…
Following U.S. and Israeli strikes in late February, Iran’s largest crypto exchange, Nobitex, saw a surge in withdrawals totaling nearly $3 million, raising questions about potential capital flight. However, analysis from TRM Labs suggests this was not mass capital flight but rather a market responding to volatility, connectivity constraints, and regulatory intervention. The Iranian government imposed a 99% internet blackout after the strikes, severely disrupting trading and causing overall transaction volumes to drop by 80%. The spike in withdrawals appears to have been an internal liquidity transfer rather than widespread panic. Despite the Rial trading at historic lows, the data indicates a controlled, state-influenced market under stress rather than uncontrolled capital flight. Crypto remains a relevant, though imperfect, hedge for Iranians amid economic and geopolitical instability.
ambcrypto03/03 17:02