Iranian Currency Crisis Fuels Protests, Underscoring BTC’s Role as Hedge, Says Bitwise CEO
Protests erupted in Tehran on December 29, 2025, when the rial, national currency, hit an all-time low against the US dollar. This made them even angrier about the economy and what they saw as the central bank’s failures.
Protesters, including store owners and regular people, flocked to the streets to speak out against the quick loss of savings due to high inflation and a falling currency.
The Financial Times that the rial has lost more than 40% of its value since the short war with Israel in June 2025. The free-market rate is now about 1.4 million rials per US dollar. This is a significant change from the official rate of about 70 rials per dollar in the ahead 1980s, as Alex Gladstein, chief strategy officer of the Human Rights Foundation, points out.
The crisis has had significant political effects, including the resignation of Iran’s central bank governor, Mohammad Reza Farzin, as protests intensified and demands for change grew stronger. In December, annual inflation hit 42.2%. Food prices rose 72% and health-related items rose 50% from the previous year, making it even harder for families to make ends meet.
Bitwise CEO Says BTC Can Protect You
Hunter Horsley, the CEO of Bitwise Asset Management, took to X to how BTC is significant in situations like these. Horsley wrote, “Economic mismanagement—the story of the past, present, and future.” “BTC is a new way for people to keep themselves secure.”
Horsley contended that BTC provides individuals a means to protect their wealth from depreciating local currency values under instability and ineffective . He said that while no single answer can solve all of Iran’s economic difficultys, BTC is a global option for maintaining purchasing power as fiat currencies lose value.
Regulatory Issues Make it Hard to Use Crypto in Iran
Even if could be a excellent hedge, Iranians still have many difficultys to overcome before they can use it. It is legally okay to trade cryptocurrencies, but the rules for retaining them personally and keeping them secure remain unclear. The government carefully controls BTC mining and has aggressively discouraged anyone from doing it.
This is because the country’s low electricity costs could theoretically make mining feasible at around $1,300 per BTC, far less than the current market price of about $87,600. Matthew Sigel, head of research at VanEck, pointed out this restrictive position, that the government is trying to stop people from mining BTC as demand for other stores of value grows.
More significant for Digital Assets
The crisis in Iran has reignited discussions about what BTC can do for countries with hyperinflation, sanctions, and unstable currencies. People in other places, like , have also increasingly used BTC and stablecoins during peso crashes.
Horsley’s comments add to a long-running story. In times of fiat fragility, like BTC can protect people, even if regulations make it hard for everyone to use them.
People who watch the market will view if this current trouble speeds up the use of BTC for peer-to-peer transactions in Iran or leads to more official crackdowns. For now, what’s happening in Tehran is a potent reminder of why many people view BTC as more than just an investment; it’s a way to protect their money.
