Middle East conflict escalates, impacting the market! Bitcoin rebounds to $67,000 after dropping below $65,000.

Gate News reports that the situation in the Middle East has deteriorated again, with Bitcoin’s price experiencing significant fluctuations, first dropping and then rising. On Monday morning, Bitcoin briefly fell to $65,112, marking a new low since February, before quickly rebounding to around $67,400 during the Asian trading session, indicating that buying interest remains near this key support level.

In the past 24 hours, Bitcoin has oscillated between $65,112 and $67,389, reflecting the market’s sensitive reaction to news of escalating conflict. With Iran-backed Houthi forces joining the conflict and the frontline expanding, coupled with the U.S. increasing troop presence in the Middle East, market risk aversion has intensified, leading to concentrated selling from short-term funds. However, the $65,000 level quickly attracted buying interest, serving as a temporary support.

Performance among other mainstream assets has been mixed. Ethereum rebounded about 2% to $2,044, Solana edged up to around $83, and XRP rose to $1.35. However, on a weekly basis, most assets remain in a correction phase, with Bitcoin down about 1% for the week, and Ethereum and Solana showing more pronounced declines, while TRX has become one of the few assets that rose against the trend.

Macro-level pressures continue to mount. Crude oil prices have climbed to around $115 per barrel, with a year-to-date increase of nearly 90%, while Iranian attacks on industrial facilities have driven up aluminum prices, spreading inflationary pressures from energy to the manufacturing supply chain. This change has pushed back expectations for Federal Reserve rate cuts, creating ongoing pressure on risk assets.

From a technical perspective, Bitcoin’s previous weeks of lower lows have gradually risen, but this drop below $66,000 has broken the short-term upward momentum. The market will now focus on whether it can regain stability in this range and restore an upward trend or further test lower support levels. Against a backdrop of geopolitical conflict and macro variables intertwined, the cryptocurrency market may continue to experience high volatility in the short term. (CoinDesk)