Bitcoin recovered above $67k after briefly dropping to $65,110 early Monday, marking its lowest level since the February war related crash. The rebound to around $67,400 came as Asian markets opened, showing buyers stepping in near the $65,000 level, which had not been tested since the first weekend of the conflict five weeks ago. The 24-hour trading range between $65,112 and $67,700 reflected heavy selling following overnight escalation headlines.
Houthi Involvement and US Troop Deployments Shake Markets
The latest escalation widened the conflict as Iran-backed Houthi forces entered the war, opening a new front beyond the direct U.S.-Israel-Iran theater. Additional U.S. troops arriving in the Middle East heightened fears of possible ground operations. Reports also indicated President Donald Trump is considering a military plan to remove enriched uranium from Iran, though no final decision has been announced. Iran’s attacks on two aluminum production facilities pushed metal prices up as much as 6%, extending the economic impact beyond energy markets.
Brent crude climbed 2.5% to roughly $108 per barrel, now up about 90% year-to-date.
Technical Levels and Inflation Risks Shape Market Outlook
Bitcoin’s dip below recent higher lows raised questions about the durability of its wartime trading pattern. Previous support levels had steadily increased from $64,000 to above $70,000 during earlier escalations. Monday’s move below $66,000 marked the first time in weeks the support level shifted lower rather than higher.
Other major cryptocurrencies showed short-term recovery, with Ethereum rising about 2% to $2,044, Solana gaining 0.9% to $83.48, and XRP advancing 1.4% to $1.35.
Rising oil and industrial metal prices suggest inflation pressures are expanding beyond energy into supply chains, potentially complicating Federal Reserve policy decisions and delaying expectations for interest rate cuts.
Disclaimer
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