In the days following the joint US-Israeli airstrikes on February 28, Iranian exchanges saw a sharp increase in outflows, with around $10.3 million fleeing the crypto, data from the chain shows.
Crypto usage in Iran amid economic recession
According to an article published on our sister website NewsBTC, crypto has become a financial lifeline for ordinary households and government-linked networks. Years of US and EU financial and oil sanctions have tightened the economy, cut off Iranian banks from SWIFT and dollar funding, and are now even targeting Iran-related crypto platforms through the latest US Treasury filings. Add to this cocktail of inflation and a collapsing riyal, and it becomes clear why many Iranians are increasingly looking to Bitcoin and stablecoins as an alternative store of value and cross-border payment method.
A life of hope for ordinary people?
Chainalysis has estimated that Iran’s crypto activity will reach about $7.78 billion in 2025, and its use is around protests, explosions and other security crises as people rush to transfer money from local platforms and to self-help.
In its latest report, Chainalysis illustrates this idea with a series of charts that track hourly outflows from major Iranian stock exchanges before and after the February 28 airstrikes.
Bitcoin outflows stalled during Internet blackout. Source: Chainalysis
The graphs show relatively modest activity in the hours leading up to the strike, followed by a sudden spike where hourly outflows are approaching or above $2 million, and cumulative outflows through March 2 are around $10.3 million.
Iranian service outflows (Feb 27, 2026 - Present). Source: Chainalysis
For many ordinary Iranians, bitcoin and stablecoins now function as a hedge against currency collapse and capital controls, while addresses linked to the Islamic Revolutionary Guard Corps (IRGC) account for nearly half of the chain’s activity, underscoring crypto’s dual role as a bailout and sanctions conduit.
It should be noted, however, that while some observers praise Chainalysis for helping exchanges and regulators track hackers, fraud and sanctions evasion, civil liberties advocates criticize its tools as opaque and potentially too financial oversight.
What does this mean for the future of Iranians?
For ordinary users, digital assets can remain a pressure valve against inflation and capital controls, even as regulators tighten the screws on Iran-related platforms and wallets. For policymakers, the question now is whether the new enforcement rounds will significantly curb sanctions evasion or mean more of Iran’s cryptographic activity will be harder to trace.
Undoubtedly, the recent surge in Iranian exchange outflows shows once again how quickly crypto reacts to geopolitical shocks and the threat of sanctions: the market is ultimately in the hands of the people.
BTC's price trends to the downside on the daily chart. Source: BTCUSDT on Tradingview
Cover image from ChatGPT, BTCUSDT chart from Tradingview
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