Bitcoin rebounds to $67,400 after briefly dropping below $65,200 amid the Houthis’ entry into the Iran conflict.

The conflict entered its fifth week with its most significant escalation yet, as Iran-backed forces opened a new фронт and U.S. ground troops began arriving in the region.

As the war expanded, bitcoin briefly retreated. The cryptocurrency fell to $65,112 early Monday — its lowest level since the February sell-off — before rebounding to $67,402 as Asian markets came online, according to CoinDesk data.

The 24-hour trading range between $65,112 and $67,389 highlights a market that initially sold off sharply on overnight geopolitical headlines but found support near the $65,000 level — a zone that hadn’t been revisited since the conflict’s opening weekend five weeks ago.

Altcoins followed with modest recoveries. Ethereum rose 2% to $2,044, Solana added 0.9% to $83.48, and XRP gained 1.4% to $1.35. Despite the green daily candles, the broader weekly trend remains weaker: bitcoin is still down 1% on the week, ethereum 0.9%, XRP 1.9%, and Solana 3.7%. Tron stands out as the exception, up 2.6% over the past day and 4.6% for the week, quietly outperforming its large-cap peers.

This latest escalation came on multiple fronts. Iran-backed Houthi forces entered the conflict, opening a new theater beyond the core U.S.-Israel-Iran axis. At the same time, additional U.S. troops were deployed to the Middle East, raising concerns about a potential ground operation.

According to The Wall Street Journal, President Donald Trump is considering a military plan to remove enriched uranium from Iran — a key component in nuclear weapons production — though no final decision has been made. Meanwhile, Iran reportedly struck two aluminum production facilities, pushing prices for the metal up as much as 6% and extending the war’s economic impact beyond oil into industrial commodities.

Brent crude climbed 2.5% to around $115 per barrel and is now up roughly 90% year-to-date. Asian equity markets reacted negatively, with South Korea’s benchmark dropping 3.2% amid a tech sell-off and Japan’s Nikkei falling 3.4%. U.S. equity futures, however, recovered from earlier losses and were trading near flat, suggesting some stabilization after the initial shock.

From a technical standpoint, bitcoin’s drop to $65,112 is significant. The level sits close to the $64,000 low recorded on Feb. 28, when the conflict began. Over the past five weeks, bitcoin has established a pattern of higher lows with each escalation — moving from $64,000 to $66,000, $68,000, $69,400, and $70,596.

Monday’s move below $66,000 marks the first break in that pattern, raising questions about whether the uptrend can be re-established or if the market is beginning to lose its footing within the range that has held since the war’s onset.

At the same time, the surge in oil prices and the spike in aluminum following direct attacks on production facilities signal that inflationary pressures are broadening beyond energy into industrial supply chains. This complicates the Federal Reserve’s policy outlook and further pushes out expectations for rate cuts.