Bitcoin and Ethereum’s dominance is being instantly 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 definitely to reshape the crypto market hierarchy within the close to future. The crypto market has grown massively lately and is now flooded with tens of millions of tokens. Nevertheless, in a latest observe 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.
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Apparently, McGlone additionally talked a few flippening of the crypto market ranks. Nevertheless, this flippening shouldn’t be the long-speculated situation 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 belongings has narrowed significantly prior to now yr. Ethereum’s market capitalization at the moment 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% progress over the previous yr. Tether at the moment controls about 58% of the worldwide stablecoin market cap, and along with USDC, the 2 account for round 82% of the whole stablecoin cap.
Bitcoin’s Lengthy Street Again To $10,000
McGlone pairs this stablecoin outlook with a notably bearish stance on Bitcoin. In response to 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 chronic corrective part following its 2025 all-time excessive, and a chart revealed alongside McGlone’s commentary exhibits 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 exhibits 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 simply too low for 2026. A reversal in that pattern 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 situation 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