Bitcoin fell to around $61,500 in recent days, its weakest level in about four months, and Peter Schiff wasted no time in connecting that drop to a broader argument he has been making about stablecoins.
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A stable coin in motion
Tethers USDT has already risen to a market cap of nearly $188 billion, according to data from DeFiLlamaclosing the gap with Ethereum to just under $26 billion. Schiff, the economist and longtime Bitcoin critic, says the numbers point to an inevitable outcome.
“Tether’s market cap will soon surpass Ethereum’s market cap,” Schiff wrote on surpass also the market capitalization of Bitcoin. The only question is how long it will last.”
USDT has become a dominant tool for moving money across crypto markets, and its reach now extends to payments, remittances and digital dollar transfers – a trend he says supports his case.
USDT has a one-dollar peg, which sets it apart from Bitcoin and Ethereum, and that stability makes it the best choice for users who want to move money without incurring price risk.
Tether’s market cap will soon surpass Ethereum’s market cap. It will also eventually surpass Bitcoin’s market cap. The only question is how long it will last.
— Peter Schiff (@PeterSchiff) June 4, 2026
Not his first warning
Schiff has sounded the alarm Bitcoin for years. His latest comments include a prediction that BTC could eventually fall below $20,000, which would represent a decline of around 80% from the October 2025 peak near $126,200.
He has also pointed to weakness in tech stocks as a pressure point for Bitcoin, noting that the crypto asset is dependent on the broader tech rally for support.
“It appears the correction in tech stocks has finally begun,” Schiff said. “With tech stocks selling off, Bitcoin should crash. Gold will likely move in the opposite direction.”
Bitcoin recently suffered a sharp hourly drop of more than $2,000, briefly reaching $61,460, as selling pressure spread across the market, triggering more than $1 billion in leveraged liquidations.
USDT’s Growing Reach
Reports point to Ethereum position as the second largest crypto asset is now under pressure from a stablecoin instead of another blockchain competitor.
According to current figures, USDT would need to grow by around 15% to stay ahead of Ethereum, while matching Bitcoin’s $1.28 trillion market cap would require a much larger expansion of almost seven times its current size.
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Schiff’s prediction has attracted attention not only for its boldness, but also for its timing, coming as stablecoin adoption continues to rise and crypto markets face new turbulence.
Whether the prediction holds up remains an open question, although the narrowing gap between USDT and Ethereum suggests that the first part of his prediction may not be far away.
Featured image from Unsplash, chart from TradingView