TLDR
- Middle East crypto activity reached an estimated $350 billion in annual blockchain transaction value by 2025–2026, up from about $100 billion in 2022.
- The Bitcoin Policy Institute said the Iran conflict pushed more regional capital toward digital assets instead of out of the region.
- Bitcoin’s share of the crypto market rose to a one-month high of 64.8% as investors moved away from riskier cryptocurrencies.
- Currency weakness in Egypt, Turkey, Lebanon and Iran has increased demand for Bitcoin and U.S. dollar-pegged stablecoins.
- Chainalysis tracked about $10.3 million leaving Iranian crypto exchanges between February 28 and March 2 after U.S.-Israeli airstrikes.
Middle East crypto activity has expanded as conflict, inflation, and currency pressure push more investors toward digital assets. The Bitcoin Policy Institute estimates blockchain transaction value across the Middle East and North Africa reached $350 billion by 2025–2026. That compares with about $100 billion in 2022.
The institute said the Iran conflict changed how capital moved during stress. Instead of leaving the region, funds shifted into Bitcoin and other digital assets as investors sought ways to preserve value and move money during disruption.
Middle East Crypto Activity Accelerates
Bitcoin initially fell with other risk assets after fighting between Israel and Iran began in June 2025. The report said investors first reacted with a traditional risk-off approach, pulling Bitcoin lower alongside global equity markets.
The pattern later changed. Investors moved from higher-risk cryptocurrencies into Bitcoin, lifting Bitcoin’s share of the crypto market to 64.8%, a one-month high. The institute said Bitcoin then stabilized as fighting continued.
The report linked stronger crypto use to fears about higher oil prices, inflation and interest rates. Around-the-clock crypto trading also gave investors access to markets during periods when financial systems were closed or disrupted.
Egypt, Turkey, Lebanon and Iran were among the countries where currency depreciation encouraged use of Bitcoin and dollar-linked stablecoins. The institute said these assets offered another way to preserve purchasing power and transfer funds outside traditional channels.
Iran Transfers Show Faster Capital Movement
Chainalysis tracked about $10.3 million leaving Iranian crypto exchanges between February 28 and March 2 this year after U.S.-Israeli airstrikes. The firm said the transfers could reflect personal withdrawals, exchange liquidity management, or activity linked to state actors.
The data supports the report’s view that Middle East crypto activity can respond quickly during conflict. However, blockchain transfers alone do not show the exact purpose behind each movement, making the source of some transactions uncertain.
The report also pointed to the UAE and Bahrain, where authorities have built regulatory systems aimed at crypto companies and institutional investors. These markets differ from countries where sanctions, conflict and currency weakness drive retail demand.
Dubai remains one of the region’s main regulated crypto centers. In May, Kraken parent Payward said it received preliminary approval from Dubai’s Virtual Assets Regulatory Authority for broker-dealer and investment management activities, adding another major firm to the Gulf’s digital asset market.
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