From Iran to Venezuela, Bitcoin and crypto have become a refuge and protection against geopolitical tensions and mass devaluation of local currencies.
Amid the ongoing protest and reported internet shutdown in Iran, crypto activity has risen to a record $7.78 billion by 2025, according to the blockchain analytics firm. Chain analysis.
According to the companyMost spikes in Iranian crypto activity corresponded to local and geopolitical tensions, including last year’s 12-day war with Israel.
Source: Chain analysis
And the current protest against the government and outside pressure has gained momentum after the Iranian Rial, the local currency, collapsed against the US dollar.
Source: Google
In other words, all 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 keep the small savings or remaining wealth in the chain.
Iranians choose Bitcoin
Amid the escalating social unrest, Chainalysis said Iranians have been actively sending large amounts of BTC to personal wallets. The report added:
“Most telling is the increase in withdrawals from Iranian exchanges to unattributed personal BTC wallets. This increase suggests that Iranians are taking ownership of Bitcoin during protests at a significantly higher rate than before.”
Source: Chain analysis
Notably, before the protests began in early December, large withdrawals or transfers of BTC under $10,000 rose to 236% and increased to 262% during the protests.
Medium withdrawals under $1000 and small transfers under $100 also increased by 123% and 78% respectively during the civil unrest.
Overall, the triple-digit growth in BTC transfers to self-custody wallets strengthened 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 almost all its value, making it effectively worthless against major currencies like the euro.”
The Iranian regime is also heavy on cryptocurrencies
But the sudden flight of citizens to personal wallets also underlined the risks posed by the regime. Iran’s military, the Islamic Revolutionary Guards Corps (IRGC), has also chosen to finance its activities and circumvent sanctions through crypto.
Now the IRGC is responsible for more than 50% of the crypto value received, making local exchanges fun No bitextargets of crypto hacks by Israeli actors.
Source: Chain analysis
As a result, it makes sense for Iranians to withdraw BTC funds from exchanges from the perspective of wealth maintenance and security.
Final thoughts
- Bitcoin has become a tool of aid and protest for Iranians after the local currency collapsed amid heightened civil unrest.
- BTC transfers to personal wallets rose to triple digits, while total Iranian crypto activity reached $7.8 billion in 2025.