Israel’s Cryptocurrency Boom: How Retail Investors Fuel Growth Amidst National Uncertainty

Israel’s cryptocurrency market has experienced significant growth, particularly following the national crisis triggered by October 7, 2023, attacks, according to a recent Chainalysis report. The country saw crypto inflows surpassing $713 billion between 2024 and 2025, demonstrating a sustained expansion in line with prior trends. Before the attacks, transaction volumes in Israel closely matched anticipated activity, with deviations averaging just -0.3%. However, following the attacks, volumes consistently exceeded forecasts, averaging $0.66 billion more per month than predicted. This pattern has persisted through 2024 and into 2025, illustrating a lasting shift in Israeli cryptocurrency user behavior. Israeli retail investors have been driving this growth. Analysis of transfer sizes reveals that the majority of activity is fueled by small and mid-range transactions (under $1,000 and between $1,000-$10,000). This trend mirrors similar patterns observed in countries like Ukraine and Iran experiencing geopolitical disruptions and economic stress.