The true test in times of crisis: Why are Iranian citizens rushing to transfer BTC into self-custody wallets

【BlockBeats】The situation in Iran continues to be turbulent, and the economic crisis is accelerating. Against this backdrop, more and more Iranians are withdrawing Bitcoin from exchanges to personal wallets, attempting to hedge against inflation and financial restrictions.

According to tracking data from blockchain analysis firm Chainalysis, during the period from the outbreak of protests to partial network restrictions, domestic exchanges significantly increased BTC transfers to personal wallets. This sends a clear signal: when turmoil occurs, people prefer to have direct control over their assets.

Why are people so eager? Just look at the exchange rate. At the end of last year, the Iranian rial had an exchange rate of around 42, but this week it has fallen to over 1050, with purchasing power nearly collapsing. In this situation, Bitcoin’s features of decentralization, censorship resistance, and cross-border transferability become especially important — it has become a practical tool to combat currency devaluation and political uncertainty. Instead of waiting in banks or exchanges, it’s better to hold it in your own hands.

Interestingly, this logic is actually universal. Whenever war, economic collapse, or government repression occurs, people turn to crypto assets for self-protection. Iran’s case is just another validation of this pattern.

What’s more notable is that official forces are also playing this game. Data shows that wallets associated with some Iranian government agencies received over 50% of Iran’s total crypto activity in Q4 last year, with on-chain transaction volume surpassing $3 billion — a figure that is likely underestimated. Therefore, from the public to the authorities, Bitcoin has already become a reality in Iran that cannot be ignored.