Crypto Market Turns Red Again as Trump Warns Iran: Bitcoin Drops 2%, SHIB Hits April Low

President Donald Trump convened a high-stakes national security meeting in the White House Situation Room on Tuesday to discuss the escalating conflict between Israel and Iran.

Following the meeting, Trump issued a series of controversial statements on social media, intensifying geopolitical tensions.

In his posts, Trump warned Iran's Supreme Leader Ayatollah Ali Khamenei against targeting U.S. forces in the Middle East, and also called for Iran's "unconditional surrender," emphasizing that he is not interested in a ceasefire but a "real end" to the war and Iran's nuclear program.

The meeting reportedly focused on the possibility of U.S. military involvement in the conflict, including a potential strike on Iran's underground uranium enrichment facility in Fordow. Israeli officials have expressed concerns that the U.S. might soon take offensive measures to assist Israel, which has already received U.S. support in defending against missile attacks.

Crypto Markets React Sharply to Trump's Statements

The cryptocurrency market, already recovering from last week's turmoil caused by Israel's airstrikes on Iran, faced renewed uncertainty following Trump's threats.

Last week, Israel's aggressive military action led to one of the sharpest declines in the crypto market this year. Bitcoin dropped 4.5%, while Ethereum plummeted over 10%, alongside broader losses across altcoins. However, the market gradually stabilized over three days, with Bitcoin bouncing back to $108,000 by June 17.

Trump's remarks have reignited market fears, driving Bitcoin down nearly 2% to $105,000, its key support level. Ethereum also saw renewed losses, and the broader crypto market mirrored the downturn, with significant declines in altcoins like Solana and XRP. The U.S. stock market also weakened, reflecting a broader risk-off sentiment among investors.

Shiba Inu (SHIB), continued its downward trajectory, dropping an additional 3.5% to its lowest level since April. Analysts noted that SHIB's inability to break through the $0.00001230 resistance level has led to sustained sell-offs, with trading volumes exceeding 1.2 billion tokens within hours.

Market experts highlight that geopolitical events like Trump's threats and Israel's military action amplify volatility in the crypto space. The decentralized nature of cryptocurrencies makes them particularly susceptible to external shocks, unlike traditional financial systems that often have mechanisms to mitigate sudden disruptions.

Odds of U.S. military action against Iran before July have soared to 65% on Polymarket. Analysts are closely monitoring Bitcoin's next support level at $104,000, as further geopolitical developments could test market resilience.

Furthermore, the broader financial markets, including equities, are showing signs of stress, with investors shifting toward safer assets like gold and U.S. Treasury bonds. This flight to safety underscores the fragile sentiment across global markets amid escalating geopolitical risks.