Bitcoin held the $65,200 level and rebounded to $67,402 after falling to $65,112 on Monday, marking its weakest point since the February selloff linked to the Iran war escalation.
The move followed a sharp deterioration in geopolitical conditions as Iran-backed Houthi forces entered the conflict, opening a new фронт and triggering a flight from risk assets across global markets.
The $65,200 level has now been defended twice since the conflict began, reinforcing its importance as a near-term support zone closely monitored by traders and institutional desks.
Broader macro pressures intensified as Brent crude climbed to around $115 per barrel, Asian equity markets dropped more than 3%, and aluminium prices surged 6% following direct attacks on production facilities.
Market sentiment remains fragile, with the Crypto Fear and Greed Index at 14 out of 100, signalling extreme fear even as dip-buying activity helped stabilise Bitcoin prices.
The geopolitical escalation also carries inflationary implications, as rising energy and industrial commodity prices could delay expected rate cuts and weigh on non-yielding assets like Bitcoin.
Despite these headwinds, Bitcoin’s ability to hold the $65,000–$67,000 range highlights relative strength in the current macro cycle, leaving investors focused on whether this level represents a durable floor or a temporary pause before further downside.
At the time of reporting, Bitcoin price was $66,654.84.