Bitcoin and Ethereum’s dominance is being immediately challenged in a brand new outlook from Bloomberg Intelligence strategist Mike McGlone, who believes that an sudden contender is positioning itself to overhaul each. Tether USDT’s market cap is steadily closing in on Ethereum, and Mike McGlone thinks the stablecoin’s ascent is barely getting began, whereas the 2 largest cryptocurrencies could also be headed in the wrong way.
The Unlikely Contender Gaining Floor
Mike McGlone, senior macro strategist at Bloomberg Intelligence, has singled out Tether (USDT) because the asset most certainly to reshape the crypto market hierarchy within the close to future. The crypto market has grown massively in recent times and is now flooded with thousands and thousands of tokens. Nonetheless, in a current word issued this week, McGlone famous that capital is gravitating towards devices that preserve stability and utility, particularly in unsure macro circumstances, and Tether’s USDT is main the cost.
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Curiously, McGlone additionally talked a couple of flippening of the crypto market ranks. Nonetheless, this flippening is just not the long-speculated state of affairs the place Ethereum overtakes Bitcoin however a far much less anticipated one the place the dollar-backed stablecoin quietly surpasses each. “I count on the ‘flippening’ to proceed, with Tether’s AUM topping Ethereum in 2026 and finally Bitcoin,” McGlone wrote.
The hole between the 2 belongings has narrowed significantly up to now 12 months. Ethereum’s market capitalization presently stands at roughly $272 billion. Tether’s market cap, in the meantime, is round $184 billion.
This time final 12 months, the stablecoin was sitting at a $144.2 billion market cap, making it a 27.6% development over the previous 12 months. Tether presently controls about 58% of the worldwide stablecoin market cap, and along with USDC, the 2 account for round 82% of the entire stablecoin cap.
Bitcoin’s Lengthy Highway Again To $10,000
McGlone pairs this stablecoin outlook with a notably bearish stance on Bitcoin. In keeping with him, there’s an enormous risk of the Bitcoin value crashing to as little as $10,000. Bitcoin has been buying and selling in a chronic corrective part following its 2025 all-time excessive, and a chart revealed alongside McGlone’s commentary reveals that Bitcoin has at all times led each fairness market upswings and downswings, and if equities are rolling over, Bitcoin could comply with.
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The chart under reveals Bitcoin’s yearly candle alongside the S&P 500 index and its 180-day volatility studying. The inventory market volatility, which is at a studying of 12.5, is just too low for 2026. A reversal in that development may result in additional declines for Bitcoin, which is already displaying indicators of rejection above $70,000.
Bitcoin Yearly Chart. Supply: @mikemcglone11 On X
Bitcoin should maintain above $75,000 to invalidate the state of affairs of a crash to $10,000. Failure to take action, in accordance with McGlone, opens the trail to a deeper reversion to as little as the $10,000 vary, which he highlights as a long-term equilibrium zone for the reason that introduction of futures markets in 2017.
Featured picture created with Dall.E, chart from Tradingview.com
