What happened in this Finance story?

MENA blockchain transactions more than tripled to an estimated $350 billion annually by 2025–2026, according to a Bitcoin Policy Institute report that credits part of the surge to capital flowing into digital assets during the Iran conflict.

What is a key fact in this story? (1)

**Bitcoin Policy Institute** report found annual MENA blockchain transactions reached ~$350 billion by 2025–2026, more than triple the ~$100 billion recorded in 2022.

What is a key fact in this story? (2)

After Israel-Iran fighting broke out in June 2025, **Bitcoin** initially fell alongside other risk assets before investors rotated into it from riskier cryptocurrencies, pushing its share of the crypto market to a one-month high of 64.8%, per the report.

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Middle East Crypto Activity Triples to $350 Billion Amid Ongoing Conflict, Report Finds — SkimNews

By Decrypt · Summarized & edited by Kapil Samant · 2026-09-07

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Bitcoin Policy Institute report found annual MENA blockchain transactions reached ~$350 billion by 2025–2026, more than triple the ~$100 billion recorded in 2022.
After Israel-Iran fighting broke out in June 2025, Bitcoin initially fell alongside other risk assets before investors rotated into it from riskier cryptocurrencies, pushing its share of the crypto market to a one-month high of 64.8%, per the report.
Crypto markets stayed open 24/7 during the conflict while traditional markets were closed, helping Bitcoin's price stabilize as investors used it to hedge against oil-price spikes, inflation and rising interest rates, the institute said.
Egypt, Turkey, Lebanon and Iran saw accelerated crypto adoption as currency depreciation pushed residents toward Bitcoin and dollar-pegged stablecoins to preserve purchasing power, the report stated.
The UAE and Bahrain are courting institutional crypto investment through new regulatory frameworks, with Payward (Kraken's parent) receiving preliminary authorization from Dubai's Virtual Assets Regulatory Authority in May for broker-dealer and investment management activities.
Chainalysis tracked roughly $10.3 million leaving Iranian crypto exchanges between February 28 and March 2 following U.S.-Israeli airstrikes, though the firm cautioned the transfers could include personal withdrawals or state-linked asset movements.

Why it matters: The conflict-driven shift flips the usual script for war zones: capital isn't fleeing the region but flowing into Bitcoin as a 24/7 hedge when traditional markets close. Gulf states like the UAE and Bahrain are positioning as regulated crypto hubs capturing institutional capital, while currency-stressed economies like Iran and Lebanon increasingly rely on Bitcoin and stablecoins to preserve purchasing power outside traditional financial rails.