Iranian cryptocurrency users sharply increased Bitcoin withdrawals during the protests, as citizens moved funds off exchanges amid political unrest and economic pressure. Data from Chainalysis shows a broad rise across all withdrawal sizes, signaling a shift toward self custody rather than speculative trading. The increase accelerated during the protest period leading up to internet blackouts between late December and early January. Compared with the pre protest period, both the value and number of outbound Bitcoin transfers climbed, with the strongest growth seen among small and mid sized users. The pattern points to defensive financial behavior rather than large scale capital flight by a small elite. The chart highlights that Bitcoin acted as a financial escape valve during moments of uncertainty. Users prioritized control over access, especially as banking services and connectivity risks increased. Iranian Exchange Users Fly to Safety of BTC During Protests. Source: Chainalysis Smaller Transfers Drive the Surge Large withdrawals under $10,000 posted the sharpest gains. Average daily dollar withdrawals in this category jumped more than 230 percent during the protest window. At the same time, the number of transfers rose by over 260 percent, according to Chainalysis data shown in the chart. Medium sized withdrawals under $1,000 also expanded rapidly. The average value of these transfers increased more than 220 percent, while the number of transactions climbed over 120 percent. This growth suggests that everyday users, not just high net worth holders, turned to Bitcoin as conditions deteriorated. Even the smallest withdrawals under $100 increased meaningfully. While the dollar value remains modest, the number of transactions rose nearly 80 percent, reflecting widespread participation and a push toward personal wallets across income levels. Protests, Currency Pressure Shape Behavior The timing aligns with renewed protests and ongoing pressure on the Iranian rial, which has faced repeated devaluation episodes. As trust in traditional financial channels weakened, Bitcoin offered an alternative that allowed users to move value without relying on local banks. Very large withdrawals, below $100,000, also increased, though at a slower pace than smaller bands. Their average daily value rose about 30 percent, while transaction counts grew more than 50 percent. This indicates broader participation rather than concentrated outflows by a few entities. Overall, the data shows a clear behavioral shift. During periods of unrest, Iranian crypto users reduced exchange exposure and favored direct control of assets. Bitcoin, in this context, functioned less as a speculative instrument and more as a tool for financial continuity when access and stability came into question. Protests, currency slide and internet blackout reshape daily life in Iran Iran entered 2026 with nationwide protests that began in late December after prices surged and the rial fell to record lows on the open market. Demonstrations that started with shop closures and rallies in Tehran’s Grand Bazaar spread to multiple provinces, while officials blamed unrest on outside forces and tightened security in major cities. At the same time, Iran imposed a near total internet shutdown starting Jan. 8, cutting off many connections to the outside world and limiting reporting and coordination. Press freedom groups and researchers said the blackout strengthened the state’s information chokehold as protests continued, while technical monitors described a nationwide drop in connectivity. Human rights organizations reported a widening crackdown that included mass arrests and lethal force in several cities, and they warned that the internet shutdown made it harder to document abuses. Amnesty International said it was investigating reports of intensified unlawful force after the shutdown, and it documented killings in multiple provinces in early January.
