Iran’s crypto market drops 80% after U.S. and Israeli strikes

Key points:

• Trading volume on Iranian crypto exchanges fell by about 80% following military strikes and widespread internet restrictions.
• TRM attributes the decline to technical access limitations, while Elliptic points to a possible surge in capital outflows.

Iran’s cryptocurrency market is going through a difficult period but remains operational, according to a new report from TRM Labs.

The firm said that between February 27 and March 1, trading volume on Iranian exchanges dropped by roughly 80%. The primary reason was restricted internet access after U.S. and Israeli strikes began on February 28.

Despite the pressure, the country’s largest exchanges have continued operating. They shifted into risk-management mode, temporarily limiting withdrawals, batching transactions, and issuing risk advisories to users.

What’s Happening With Liquidity and Capital Flows

Iran’s central bank ordered several major platforms — including Nobitex, Wallex, and Tabdeal — to temporarily suspend trading in the USDT–toman pair. The pair serves as a key bridge between cryptocurrencies and the national currency. After trading resumed, liquidity thinned: order books became shallower and price swings grew more pronounced.

Iranians are withdrawing cryptocurrency en masse to personal wallets. Why is this happening?

There has been a sharp surge in activity among Iranian cryptocurrency users amid mass protests in the country and the high probability of a military confrontation with the United States.

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Particular attention has focused on Nobitex, Iran’s largest exchange. According to TRM, inflows and outflows increased by around $3 million after the attacks began. However, the firm noted that such activity does not necessarily fall outside normal operating ranges.

Earlier, blockchain analytics firm Elliptic reported that outflows from Nobitex jumped 700%, reaching nearly $3 million. The company suggested this could signal capital flight from Iran. TRM, however, cautioned against drawing premature conclusions, arguing that the drop in volumes is primarily tied to technical access restrictions rather than a breakdown of market infrastructure.

The situation remains tense amid recent military strikes and broader regional instability. Iranian officials say they have no plans to negotiate with the United States, despite signals from Washington expressing willingness to engage in dialogue.