Local residents directly stored Bitcoin as Iranian government cracks down on recent street protests BTC$95,596.80highlighting the decentralized and censorship-resistant appeal of cryptocurrencies.
Since December 28, street demonstrations have taken place in several Iranian cities against the Islamic Republic’s government and the deepening economic crisis, which is characterized by rampant inflation and currency collapse.
From the start of the protests until January 8, when Iran imposed an internet blackout, blockchain intelligence firm Chainalysis observed a notable increase in blockchain transaction withdrawals. BTC From Iranian exchanges to unknown private wallets.
“Most notably, there has been a sharp increase in personal Bitcoin withdrawals from Iranian exchanges of unknown origin.” BTC$95,596.80 wallet. “This spike suggests that Iranians are owning a significantly higher percentage of Bitcoin during the protests than before,” Chainalysis said in a report released Thursday.
Real collapse stimulates hedging demand
The company said the urge to hide Bitcoin was a “rational response” to the collapse of Iran’s official paper (fiat) currency, the Rial (IRR), which eroded the nation’s purchasing power. The massive depreciation has made it worthless, plummeting from around 42 rials to the US dollar at the end of December to more than 1,050 rials this week.
Bitcoin is a peer-to-peer decentralized currency with a fixed supply of 21 million coins and is widely seen as a powerful hedge against paper money collapse and economic crisis. Its censorship-resistant nature and the fact that it can be moved across borders without bank or government intervention make it especially important during the political instability Iranians are currently facing.
BTC It thus provides Iranians with “liquidity and selectivity” and facilitates quick access to cross-border cash outside of official channels.
Iran’s trend is consistent with global patterns, where governments turn to cryptocurrencies when oppressing their people.
“This pattern has increased.” BTC “The withdrawal during times of heightened instability reflects global trends also observed in other regions experiencing war, economic turmoil, and government repression,” Chainalysis said.
IRGC adopts cryptocurrencies
Forces associated with the Iranian regime have also embraced cryptocurrencies.
According to Chainalies, addresses associated with the Islamic Revolutionary Guards Corps (IRGC), also known as the Iranian Revolutionary Guard Corps, have been steadily increasing as a proportion of total Iranian cryptocurrency activity, accounting for more than 50% of the total cryptocurrency value received in Q4 2025.
These IRGC addresses process more than $2 billion on-chain, reaching a total of $3 billion by 2025, but the company said this number may be an underestimate as it only tracks wallets sanctioned by the U.S. and Israel.
