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 just 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 lately and is now flooded with thousands and thousands of tokens. Nevertheless, in a latest notice issued this week, McGlone famous that capital is gravitating towards devices that preserve stability and utility, particularly in unsure macro situations, and Tether’s USDT is main the cost.
Associated Studying
Apparently, McGlone additionally talked a couple of flippening of the crypto market ranks. Nevertheless, this flippening just isn’t 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 ultimately Bitcoin,” McGlone wrote.
The hole between the 2 property has narrowed significantly prior to now yr. Ethereum’s market capitalization presently stands at roughly $272 billion. Tether’s market cap, in the meantime, is round $184 billion.
This time final yr, the stablecoin was sitting at a $144.2 billion market cap, making it a 27.6% development over the previous yr. Tether presently controls about 58% of the worldwide stablecoin market cap, and along with USDC, the 2 account for round 82% of the full stablecoin cap.
Bitcoin’s Lengthy Highway Again To $10,000
McGlone pairs this stablecoin outlook with a notably bearish stance on Bitcoin. In line with him, there’s an enormous risk of the Bitcoin worth crashing to as little as $10,000. Bitcoin has been buying and selling in a protracted 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 observe.
Associated Studying
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 might 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, based on 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
