Bitwise CEO points out Bitcoin amid deepening Iranian currency crisis

Iran’s rial hit a record low against the US dollar, sparking protests on the streets of the capital and other major cities.

This economic crisis has reignited the debate about Bitcoin’s potential as a safe-haven asset. Bitwise CEO Hunter Horsley has suggested that the largest cryptocurrency could act as a safeguard against financial turmoil.

Real clashes spark unrest and protests erupt across Iran

According to the Financial Times, the currency’s value has fallen by more than 40% since the June 2025 conflict between Iran and Israel. Remarkably, the decline from 32,000 rials to the dollar in 2015 to more than 1.4 million rials to the dollar corresponds to an almost 44-fold decline in 10 years. This rapid decline exacerbated Iran’s economic crisis.

“In the early 1980s, the official rate was $70 to the dollar,” said Alex Gladstein.

The inflation rate in December reached 42.2%, up from the same period last year and 1.8% compared to November. This puts Iranian families under severe strain. Food prices rose 72% in December 2025 compared to a year ago, and medical prices rose 50%.

Shops in Tehran’s Grand Bazaar were closed in protest, and demonstrations spread to Isfahan, Shiraz and Mashhad. The Associated Press reported that these were the largest street protests since 2022.

The crisis is fueled by declining oil revenues due to US sanctions, deep problems in the banking sector, political turmoil and structural corruption. Under these circumstances, the central bank governor, Mohammad Reza Farzin, resigned.

Government initiatives such as food stamps and subsidies have been aimed at alleviating public grievances. However, these relief measures are limited as inflation continues.

Meanwhile, traditional safe-haven assets such as gold are soaring. Gold coins, Iran’s classic store of wealth, reached 1.7 billion rials each on December 28, more than double their value in June.

Bitcoin’s role as a store of value

Gold has long been established as a traditional safe-haven asset, but many are pointing to Bitcoin as a potential alternative asset. Bitwise CEO Hunter Horsley echoed this view in a recent post.

“Economic mismanagement – ​​a story of past, present and future. Bitcoin is a new way for people to protect themselves,” Horsley said.

The concept of Bitcoin as a hedge is increasingly being applied across multiple economies. In the United States, rising inflation and fears of a recession have many investors positioning Bitcoin as a tool to protect their purchasing power. BlackRock CEO Larry Fink has previously supported Bitcoin.

“If you’re afraid of the depreciation of your local currency or the economic and political stability of your country, you can use an internationally-based instrument called Bitcoin to overcome those local fears,” Fink said.

Data from around the world confirms the increasing use of cryptocurrencies to fight inflation. According to the September 2025 MEXC report, 46% of cryptocurrency users cite digital assets as a way to hedge against inflation.

Argentina provides a clear example of this trend in practice. As the peso collapsed and inflation accelerated, Argentines increasingly turned to Bitcoin and stablecoins to preserve its value.

While the collapse of the Iranian rial has reignited the narrative of Bitcoin as a hedge against currency depreciation, the reality is more nuanced. Bitcoin’s fixed supply and independence from domestic monetary policy make it an attractive alternative in an environment characterized by chronic inflation, capital controls, and political instability.

In such situations, they increasingly serve as a tool to preserve value in the event of a loss of confidence in a country’s currency. However, it is equally important to realize that Bitcoin is still very volatile. In addition, government bans and restrictions may also impede access and usability.

The article Bitwise CEO points to Bitcoin amid Iran’s deepening currency crisis appeared first on BeInCrypto.