Iran's crypto economy has ballooned to $7.8 billion in 2025, a sharp rise from 2024, as citizens and state actors alike turn to digital assets amid economic chaos, according to Chainalysis.
With inflation between 40% and 50% and protests intensifying, crypto is serving as both a financial escape valve for civilians and a sanctions-evading channel for the regime. Chainalysis notes that in a crisis, Bitcoin becomes the preferred safe haven for Iranians, while stablecoins handle remittances due to their low cost and stability.
As authorities imposed internet restrictions in late 2025, withdrawals from exchanges to personal wallets spiked. "When people fear their government, worry about financial censorship, or see their local currency inflating, Bitcoin provides an alternative," said Bradley Rettler of the Bitcoin Policy Institute. "The only way to ensure you can keep access to your Bitcoin and use it privately is to withdraw it to a personal wallet. This seems to be what is happening in Iran."
Bitcoin's history as a tool for dissidents dates back to WikiLeaks in 2011, and research shows usage spikes during crises like COVID-19 or wars when bank access is disrupted.
But it's not just protesters. State-linked activity is surging, with addresses tied to Iran's Islamic Revolutionary Guard Corps (IRGC) accounting for over 50% of all crypto value received in Q4 2025. "The IRGC plays a significant role in the economics of Iran. Their adoption of Bitcoin signals to the rest of the world and to Iranian citizens that it is valuable," Rettler said, noting that activists call Bitcoin a "Trojan horse for freedom."
Chainalysis warns its $7.8 billion figure likely understates true state involvement, as it only covers identified wallets, missing shell entities and intermediaries. The data suggests Bitcoin is now entrenched in Iran's financial landscape, used both to preserve personal wealth and navigate U.S. sanctions.
"Political leaders will acquire Bitcoin because of its potential as an investment, but that in turn prompts the citizens of that country to learn more about it and want to acquire it themselves," Rettler explained. "When they do, they find themselves with a money that cannot be manipulated, that allows for significant financial privacy, and that resists censorship. In seeking wealth through Bitcoin, rulers give their people more freedom."
Meanwhile, other crypto news includes CME Group planning to add Cardano, Chainlink, and Stellar futures on February 9, pending regulatory review. TD Cowen cut its price target on Michael Saylor's Strategy (MSTR) to $440 from $500 but kept a buy rating, citing pressure amid Bitcoin price compression. And as North American Bitcoin mining's share declines, firms pivoting to AI infrastructure may open doors for countries like China, despite U.S. ambitions for tech dominance.
