After dipping below $65,200, bitcoin recovers to $67,400 as the Houthis join the Iran war.

The conflict has entered its fifth week with its most expansive escalation yet, as Iran-backed forces opened a new front and additional U.S. troops were deployed to the region.

Bitcoin briefly came under pressure amid the developments. The cryptocurrency dropped to $65,112 early Monday — its lowest level since the February sell-off — before recovering to $67,402 as Asian markets opened, according to CoinDesk data.

The 24-hour range of $65,112 to $67,389 reflects an initial wave of selling triggered by overnight headlines, followed by renewed buying interest near $65,000 — a level that had not been revisited since the first weekend of the conflict.

Altcoins also staged a modest rebound. Ethereum rose 2% to $2,044, Solana gained 0.9% to $83.48, and XRP advanced 1.4% to $1.35. Despite the daily recovery, weekly performance remains weak, with bitcoin down 1%, ethereum 0.9%, XRP 1.9%, and Solana 3.7%. Tron continues to outperform, up 2.6% on the day and 4.6% over the week.

The latest escalation unfolded on multiple fronts. Iran-backed Houthi forces entered the conflict, opening a new theater beyond the core U.S.-Israel-Iran axis, while the arrival of additional U.S. troops intensified concerns over a potential ground operation.

The Wall Street Journal reported that 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, driving prices for the metal up by as much as 6% and broadening the economic impact beyond oil markets.

Brent crude rose 2.5% to around $115 per barrel, extending its year-to-date surge to roughly 90%. Asian equity markets declined sharply, with South Korea’s benchmark falling 3.2% amid a technology-led sell-off and Japan’s Nikkei dropping 3.4%. U.S. stock futures, however, recovered from earlier losses and traded near flat, suggesting some stabilization.

From a technical standpoint, bitcoin’s dip to $65,112 is notable as it sits close to the $64,000 low recorded on Feb. 28, when the conflict began. Over the past five weeks, bitcoin had been forming a pattern of higher lows during each escalation — rising 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 the possibility that the uptrend may be weakening. Whether bitcoin can reclaim higher ground or begins to slip below the established range will be a key focus for markets.

At the same time, rising oil prices and the spike in aluminum — driven by direct attacks on production facilities — signal that inflationary pressures are spreading beyond energy into broader industrial supply chains. This complicates the Federal Reserve’s policy outlook and further delays expectations for rate cuts.

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