Bitcoin

This escalation occurs amid a fragile geopolitical landscape, with the market already pricing in high greed (Fear & Greed at 70). Historically, crypto has shown resilience to regional conflicts but remains vulnerable to oil supply shocks and US dollar strength, which could drain liquidity from risk assets.

Yemeni government announced a major offensive against Houthis while Iran stated it is ready to defend itself if the US attacks.

Yemen Orders Major Offensive on Houthis as Iran Signals Readiness to Defend Itself

Iran's defense posture could trigger a regulatory domino effect, pushing Middle Eastern sovereign funds to accelerate Bitcoin adoption as a sanctions-proof reserve.

It fits a pattern of Trump using transactional leverage (tariffs, tech export controls, now weapons) against China. Markets are currently complacent with Fear & Greed at 73, BTC at $82,958, and altcoins already underperforming. Any escalation in US-China tensions tends to hit risk assets, but crypto's 24/7 liquidity often makes it the first place investors de-risk.

US Ambassador to China David Perdue said President Trump asked Xi Jinping if China would like to buy US weapons during a recent meeting.