Upgrade Protest, Rial Plunges, Iranian People Madly Hodling

BlockBeats News, January 16: Against the backdrop of ongoing internal protests and deepening economic crisis in Iran, Iranian citizens are accelerating the withdrawal of Bitcoin from exchanges to personal wallets to hedge against inflation and financial censorship risks.

Blockchain analysis firm Chainalysis pointed out that from December 28, 2025, when the protests broke out, to January 8, during Iran's internet shutdown, BTC outflows from Iranian domestic exchanges to unknown individual wallets significantly increased, indicating that people are more inclined to directly control their crypto assets during turbulent times.

The analysis suggests that this behavior is a rational response to the collapse of the Iranian Rial (IRR). Data shows that the Rial-to-US Dollar exchange rate has plummeted from around 42 at the end of last year to over 1,050 this week, almost collapsing purchasing power. Bitcoin, with its decentralization, censorship resistance, and cross-border transferability, is seen as a key tool to combat currency devaluation and political uncertainty, providing people with "liquidity and choice."

Chainalysis also pointed out that this phenomenon aligns with a global pattern: during war, economic turmoil, or government crackdowns, people often turn to cryptocurrency to protect their assets. It is worth noting that official Iranian forces are also increasing their use of crypto assets. The report shows that wallets associated with the Islamic Revolutionary Guard Corps (IRGC) in Iran accounted for over 50% of Iran's crypto activity receipts in the fourth quarter of 2025, with an annual on-chain transaction volume exceeding $3 billion (likely still underestimated).