by Coinstrooper Crypto Articles
Quick Take
  • Hunter Horsley, CEO of Bitwise, pointed to Bitcoin as a form of protection against such monetary failures.
  • “Economic mismanagement — the story of the past, present, and future,” he said.
  • “Bitcoin is a new way for the people to protect themselves.“
  • Security forces deployed tear gas and batons in downtown Tehran as demonstrators pushed back, forcing police to retreat from several areas.

What Happened

The government introduced a third gasoline price tier on Saturday, the first major fuel adjustment since 2019 price hikes sparked deadly protests.

President Pezeshkian announced fundamental reforms to the monetary and banking system while replacing Farzin with former economy minister Abdolnaser Hemmati, who was previously dismissed by parliament in March due to the rial’s sharp depreciation.

Market Context

Merchants in the iron market, electronics centers, and mobile phone trading hubs gathered outside shuttered shops, chanting “Don’t be afraid, we are together” and “Death to the dictator.“

Food prices surged 72%, and medical items climbed 50% from the previous December as the rial’s depreciation made imported essentials increasingly unaffordable.

Why It Matters

The demonstrations marked a significant escalation from recent protests, mobilizing traditional government supporters like bazaar merchants whose participation historically signals deeper instability.

The IRGC-run Fars News Agency reported small cells of protesters chanting slogans beyond economic demands, suggesting coordination efforts.

“I have tasked the Minister of the Interior to hear the legitimate demands of the protesters through dialogue with their representatives so that the government can act with all its might to resolve problems.“

Details

Iran’s currency (Rial) collapsed to a historic low of 1.42 million rials per US dollar over the weekend, triggering the country’s largest protests in three years as merchants shuttered shops across Tehran and other major cities.

The sharp depreciation prompted Central Bank Governor Mohammad Reza Farzin to resign on Monday, while demonstrators clashed with security forces demanding immediate government intervention to stabilize the economy.

Hunter Horsley, CEO of Bitwise, pointed to Bitcoin as a form of protection against such monetary failures. “Economic mismanagement — the story of the past, present, and future,” he said. “Bitcoin is a new way for the people to protect themselves.“

Nationwide Strikes Grip Commercial Centers

Shopkeepers in Tehran’s Grand Bazaar and central commercial districts closed their businesses for two consecutive days starting Sunday, as protests spread to Isfahan, Shiraz, and Mashhad.

Security forces deployed tear gas and batons in downtown Tehran as demonstrators pushed back, forcing police to retreat from several areas.

Videos circulated online showed protesters attacking a cleric’s vehicle while others inside shopping complexes shouted anti-government slogans.

State media acknowledged the unrest but characterized it as solely an economic grievance rather than broader dissatisfaction with the Islamic regime.

President Masoud Pezeshkian instructed his interior minister to engage protesters through dialogue, while Chief Justice Gholamhossein Mohseni Ejei called for swift punishment of those responsible for currency fluctuations.

Economic Crisis Deepens Under Multiple Pressures

Iran’s economic conditions deteriorated sharply throughout 2025, with inflation reaching 52.6% year-over-year in December according to official data, though critics view the pace of increases as approaching hyperinflation.

The currency traded at approximately 32,000 rials per dollar when the 2015 nuclear accord lifted sanctions, before deteriorating following President Donald Trump’s 2018 withdrawal and subsequent reimposition of maximum pressure sanctions.

The situation worsened after June’s 12-day war with Israel damaged infrastructure and diverted resources toward reconstruction, while September’s UN snapback mechanism froze Iranian assets abroad and reimposed nuclear-related penalties.

Unemployment remained high among youth as structural imbalances affected banking, pensions, and environmental sectors.

Motorists now pay over three times the subsidized rate for purchases above 160 liters per month, raising concerns about accelerating inflation despite Iran maintaining some of the world’s cheapest gasoline.

“The livelihood of the people is my daily concern,” Pezeshkian said on X.

Exiled Crown Prince Reza Pahlavi advocated for regime change through civil disobedience, with some gatherings displaying monarchical symbols.