People Turning to Decentralized Financial Tools
With ongoing street protests in Iran and the deepening economic crisis, citizens are increasingly withdrawing Bitcoin from exchanges and storing it in personal wallets to avoid the instability of the traditional financial system.
This trend highlights the decentralized and censorship-resistant nature of cryptocurrencies, offering people a way to protect their assets during times of political and economic uncertainty.
Rise in Bitcoin Withdrawals
Since the protests began on December 28, unrest has spread across multiple cities, with citizens expressing frustration over government policies and worsening economic conditions, particularly high inflation and currency devaluation.
Data from blockchain analytics firm Chainalysis shows a significant increase in Bitcoin withdrawals from Iranian exchanges to unknown personal wallets during the protest period and prior to the internet shutdown on January 8.
Cryptocurrency as a Safe-Haven Asset
- Cryptocurrencies provide financial freedom without reliance on traditional banking systems.
- Bitcoin’s censorship-resistant nature makes it particularly appealing during times of political instability.
- Self-custody of assets reduces the risk of government interference.
This shift not only reflects declining trust in the current financial system but also indicates that cryptocurrencies are increasingly becoming a safe-haven asset during global economic turmoil.