The dominance of Bitcoin and Ethereum is being directly challenged in a new view from Bloomberg Intelligence strategist Mike McGlone, who believes that an unexpected contender positions itself to overtake both. Tether USDT’s market cap is steadily approaching Ethereum, and Mike McGlone thinks the stablecoin’s rise is just beginning, while the two largest cryptocurrencies may be heading in the opposite direction.
The unlikely contender is gaining ground
Mike McGlone, senior macro strategist at Bloomberg Intelligence, has selected Tether (USDT) as the asset that is likely to reshape the crypto market hierarchy in the near future. The crypto market has grown enormously in recent years and is now flooded with millions of tokens. However, in a recent note issued this week, McGlone noted that capital is focusing on instruments that maintain stability and utility, especially in uncertain macro conditions, and that Tether’s USDT is leading the way.
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Interestingly, McGlone also talked about a reversal of the crypto market. However, this reversal is not the long-speculated scenario in which Ethereum overtakes Bitcoin, but a much less expected scenario in which the dollar-backed stablecoin quietly surpasses both. “I expect the flipping to continue, with Tether’s AUM surpassing Ethereum and eventually Bitcoin by 2026,” McGlone wrote.
The gap between the two assets has been reduced considerably in the past year. Ethereum’s market cap is currently around $272 billion. Tether’s market capitalization, meanwhile, is approximately $184 billion.
This time last year, the stablecoin had a market capitalization of $144.2 billion, representing a growth of 27.6% over the past year. Tether currently controls approximately 58% of the global stablecoin market capitalization together with USDC, the two account for approximately 82% of the total stablecoin cap.
Bitcoin’s long road back to $10,000
McGlone couples this stablecoin outlook with a noticeably bearish stance on Bitcoin. According to him, there is a good chance that the Bitcoin price will fall to $10,000. Bitcoin is trading in a prolonged correction phase following its all-time high in 2025, and a chart published along with McGlone’s commentary shows that Bitcoin has always been at the forefront of both stock market ups and downs, and if stocks reverse, Bitcoin could follow suit.
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The chart below shows Bitcoin’s annual candle alongside the S&P 500 index and its 180-day volatility measure. Stock market volatility, which stands at 12.5, is too low for 2026. A reversal in that trend could lead to further declines for Bitcoin, which is already show signs of rejection above $70,000.
Bitcoin annual chart. Source: @mikemcglone11 On X
Bitcoin needs to hold above $75,000 to negate the scenario of a crash to $10,000. Failure to do so, according to McGlone, opens the way to a deeper return to the $10,000 level, which he has highlighted as a long-term equilibrium zone since the introduction of futures markets in 2017.
Featured image created with Dall.E, chart from Tradingview.com