Bitcoin Dips Amid Middle East Escalation as War Expands

Bitcoin briefly tumbled to $65,112 early Monday — its lowest point since February — before rebounding to $67,402 as Asian markets opened, according to CoinDesk. The sharp dip came as geopolitical tensions in the Middle East intensified overnight, triggering a risk-off selloff across crypto markets.

The day's trading range told a clear story: panic selling on war headlines, followed by buyers stepping in near the $65,000 support zone — a price level last tested during the conflict's opening weekend five weeks ago. While the broader crypto market flashed green within 24 hours, the weekly picture remains bearish. Bitcoin is down 1% on the week, Ethereum off 0.9%, XRP down 1.9%, and Solana trailing at a 3.7% weekly loss. Tron stands as the sole outperformer, up 4.6% weekly and quietly leading the majors complex.

The latest escalation came from several directions at once. Iran-backed Houthi forces joined the conflict, opening a new military front. Additional U.S. troops deployed to the region, stoking fears of a broader ground operation. The Wall Street Journal reported that President Trump is weighing a military strike to seize enriched uranium from Iran, though no final decision has been made. Iran also struck two aluminum production facilities, sending the metal up as much as 6% and signaling that the war's economic fallout is now spreading beyond oil into industrial supply chains.

Brent crude climbed 2.5% to around $115 per barrel — roughly 90% higher year-to-date. Asian equities sold off sharply, with South Korea's benchmark falling 3.2% and Japan's Nikkei dropping 3.4%. S&P 500 futures steadied, suggesting some market stabilization.

Technically, Bitcoin's dip below $66,000 breaks a five-week pattern of higher lows. With oil surging and commodity inflation broadening, Federal Reserve rate cuts appear increasingly distant, adding more headwinds to crypto's near-term outlook.