Iranians Rush to Bitcoin and Self-Custody as Middle East Tensions Boil Over
Following escalating Middle East tensions, Iranians are rapidly withdrawing Bitcoin to self-custody wallets to protect savings from sanctions and instability.Summary
Amid fresh U.S.-Israeli airstrikes starting February 28, 2026, on-chain data shows a significant surge in cryptocurrency withdrawals from Iranian exchanges, with outflows reaching $10.3 million in a few days.
Iranian citizens are rapidly buying Bitcoin and moving it into self-custody wallets, a pattern indicating efforts to secure savings outside the reach of potential sanctions, bank controls, or internet blackouts. This trend highlights Bitcoin's role as a financial lifeline in Iran's hyperinflation-hit economy, where the national currency has severely devalued and access to global banking is restricted.
Iran has developed a substantial crypto economy, valued around $7.8 billion in 2025, largely as a response to structural financial constraints imposed by sanctions since 2018. While the government uses crypto for trade mitigation, citizens increasingly rely on decentralized assets to preserve wealth when confidence in traditional financial systems weakens, mirroring patterns seen in other crisis economies globally.
(Source：CCN)