Bitcoin withdrawals surge in Iran… ‘flight to assets’ as currency value collapses

As anti-government protests in Iran spread nationwide, bitcoin (BTC) withdrawals have been rising locally. A withdrawal refers to moving digital assets held on an exchange to a personal wallet.

According to CoinDesk on the 16th (Korea time), blockchain analytics firm Chainalysis said that “from late December last year when the Iran protests began until early January when internet shutdown measures were imposed, large amounts of bitcoin moved from exchanges in Iran to external personal wallets.”

Chainalysis explained, “Compared with before the protests, the share of Iranian users seeking to hold bitcoin directly has risen noticeably,” adding that it is “a phenomenon repeatedly observed whenever political and social instability intensifies.”

The interpretation is that the sharp drop in the value of Iran’s domestic currency, the rial (IRR), as the protests escalated, has fueled this trend. The rial has recently surged to 10.65 million rials per U.S. dollar, leaving it effectively worthless.

Chainalysis analyzed that “increasing bitcoin holdings is a rational response under currency-collapse conditions,” noting that its ability to move across borders and its nature as an asset not subject to government control serve as advantages in an unstable environment.

Amid these circumstances, signs have also emerged within the Iranian government of moves to stockpile digital assets. According to a Chainalysis report, as of the fourth quarter of 2025, about 50% of total inflows into Iran’s digital-asset market flowed into wallets linked to the Islamic Revolutionary Guard Corps (IRGC).