Iran's economic situation is now starting to become unsustainable. The rial has fallen to a historic low of 42,125 against the US dollar, inflation soared to 42.2% last month, and even the central bank governor has submitted his resignation.

This is not just bad data. In Tehran, Mashhad, Kerman Shah—markets in major cities—merchants and ordinary people have taken to the streets. Prices are rising too fast, the currency is losing value, and the economy is stagnating. In some places, merchants have clashed with riot police, and universities are planning to join the protests.

President Pavezihiyan has taken some action, announcing economic reforms and instructing the interior minister to dialogue with protest representatives in an attempt to ease the situation. However, based on the data, the problems cannot be solved overnight.

Regarding the root causes, long-term US sanctions, capital flight, and geopolitical pressures (such as potential strikes against Iran’s nuclear facilities) have compounded, directly pushing the economy into a corner. GDP growth has stagnated, and the vulnerabilities of emerging markets have been fully exposed.

What will this social unrest triggered by economic collapse eventually evolve into? Is the currency risk in emerging markets accelerating? What does this mean for the crypto market—are safe-haven funds entering or is risk sentiment worsening? All these are worth paying attention to.