Upgrade Protest, Rial Plunges, Iranian People Madly Hodling

On January 16: Amid ongoing domestic protests and a deepening economic crisis in Iran, Iranian citizens are accelerating Bitcoin withdrawals from exchanges to personal wallets to hedge against inflation and financial censorship risks. Blockchain analytics firm Chainalysis notes that from December 28, 2025—when the protests erupted—to January 8 (during Iran’s internet shutdown), BTC outflows from Iranian domestic exchanges to unknown individual wallets surged significantly. This indicates people are more inclined to directly control their crypto assets amid turmoil. The analysis suggests this behavior is a rational response to the collapse of the Iranian Rial (IRR). Data shows the IRR-to-USD exchange rate has plummeted from around 42 at the end of last year to over 1,050 this week, nearly 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 notes this phenomenon aligns with a global pattern: During war, economic turmoil, or government crackdowns, people often turn to cryptocurrency to protect their assets. Notably, Iranian official forces are also increasing their use of crypto assets. The report shows wallets linked to Iran’s Islamic Revolutionary Guard Corps (IRGC) accounted for over 50% of Iran’s crypto activity receipts in Q4 2025, with an annual on-chain transaction volume exceeding $3 billion (likely still underestimated).