Cryptocurrency adoption across the Middle East has accelerated as military conflicts, currency instability and limitations within traditional financial systems reshape how people and businesses manage money.
Zaid Belbagi, managing partner at London-based Hardcastle Advisory, argues in an analysis for the Bitcoin Policy Institute that cryptocurrencies are increasingly being used across the region for practical financial purposes rather than simply as speculative investments. In countries facing economic or political uncertainty, digital assets can provide an alternative way to preserve wealth and transfer funds quickly.
According to data cited by the Bitcoin Policy Institute, annual on-chain transaction volumes across the region increased from approximately $100 billion in 2022 to around $350 billion in 2025-2026. The rapid expansion highlights a regional crypto market driven by factors that differ significantly from those shaping adoption in developed economies.
In markets such as the United States, cryptocurrency growth has been strongly influenced by institutional investment, financial products and regulatory developments. In the Middle East and North Africa, however, adoption has been more closely associated with economic pressures and the changing role of digital financial infrastructure.
Key factors behind the region’s growing cryptocurrency activity include:
- Macroeconomic instability and financial pressure
- Depreciation and devaluation of local currencies
- Government-led digitalisation initiatives
- The need for faster and more flexible cross-border transfers
Belbagi also examined cryptocurrency market behaviour following the escalation of tensions between Israel and Iran in June 2025.
Bitcoin initially fell by around 2.3% to approximately $105,200 following the first strikes, while Ethereum declined by about 7.5%. The overall cryptocurrency market capitalization also dropped by roughly 3.7%.
The initial reaction, however, was relatively short-lived. Bitcoin subsequently stabilized in the $104,000-$106,000 range, while its share of the overall cryptocurrency market capitalization climbed to 64.8%.
The market’s response suggests that geopolitical instability does not necessarily translate into a sustained collapse in cryptocurrency demand. Instead, in parts of the Middle East, periods of conflict and financial uncertainty may reinforce the role of digital assets as alternative tools for storing and moving capital.
The trend also underscores the increasingly diverse reasons behind cryptocurrency adoption in the region, where economic resilience, currency protection and access to financial services can be just as important as investment returns.
