Haciyev Reşit 
The Iranian rial fell to a record low against the US dollar in December 2025. The currency has lost 40% of its value since June, triggering protests and economic unrest in the capital Tehran and other major cities. This situation has reignited discussions about Bitcoin’s role as a safe-haven asset. Bitwise CEO Hunter Horsley suggested that Bitcoin could serve as a protection tool for investors during such economic crises.
Developments in Iran’s Economy
According to Financial Times data, the rial has lost more than 40% of its value against the dollar since June 2025. In particular, the drop of the rial from 32,000 per dollar in 2015 to 1.4 million per dollar represents roughly a 44-fold loss in value over ten years. This rapid decline has deepened the economic crisis in Iran. Inflation rose to 42.2% in December, while food prices increased by 72% and medical products by 50% compared to the previous year. These developments have put Iranian families under severe financial pressure.
The economic crisis has been exacerbated by declining oil revenues due to US sanctions, problems in the banking sector, political chaos, and structural corruption. During this period, Central Bank Governor Mohammad Reza Farzin resigned. Although the government’s efforts with food coupons and subsidies provided limited relief, the continuously rising inflation failed to alleviate the public’s economic hardships.
Bitcoin’s Protective Role
Traditional safe-haven assets, particularly gold, have seen rapid value increases in Iran. Gold coins reached 1.7 billion rials each on December 28. However, Bitwise CEO Hunter Horsley emphasized that Bitcoin could also serve as a protective tool:
“Economic mismanagement – past, present, and future. Bitcoin is a new way for people to protect themselves.”
Thanks to its fixed supply and independence from domestic monetary policy, Bitcoin emerges as an attractive alternative in countries characterized by chronic inflation, capital controls, and political instability. Rising inflation and economic uncertainty in the US have also led many investors to view Bitcoin as a tool to preserve purchasing power. Similarly, BlackRock CEO Larry Fink has supported Bitcoin’s role in this regard.
Global Examples and Applications
In Argentina, as the peso collapsed and inflation accelerated, people increasingly turned to Bitcoin and stablecoins. The collapse of the Iranian rial has similarly brought Bitcoin’s narrative as a protective tool against national currency devaluation back into focus.
Analysts highlight the appeal of Bitcoin’s potential safe-haven role but warn that risks such as volatility and government bans cannot be ignored. Therefore, Bitcoin’s role as a long-term store of value and a protective asset during crises presents both an opportunity and a risk that investors must manage carefully.