Bloomberg Intelligence strategist Mike McGlone expects Tether (USDT) to surpass both Ethereum (ETH) and Bitcoin (BTC) in market capitalization, while warning that Bitcoin could fall as low as $10,000.
McGlone's Tether Forecast
In a note published this week, McGlone, a senior macro strategist at Bloomberg Intelligence, argued that capital in crypto markets is shifting toward stable, utility-driven instruments. He pointed to Tether's USDT as the clearest beneficiary of that trend.
"I expect the 'flippening' to continue, with Tether's AUM topping Ethereum in 2026 and eventually Bitcoin," McGlone wrote.
The gap between Tether and Ethereum has narrowed sharply. Ethereum's market cap sits at roughly $272 billion, while Tether stands near $184 billion. A year ago, the stablecoin held $144.2 billion — a 27.6% increase over the past 12 months.
Tether now controls about 58% of the global stablecoin market. Together with USDC, the two account for around 82% of total stablecoin capitalization.
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Bitcoin's $10,000 Warning
McGlone paired this stablecoin outlook with a sharply bearish view on Bitcoin. He suggested BTC could crash to as low as $10,000, citing historical patterns where Bitcoin has led both equity rallies and selloffs.
A chart accompanying his analysis shows Bitcoin's yearly candle alongside the S&P 500 index and its 180-day volatility reading. Stock market volatility currently sits at 12.5 — too low for 2026, in McGlone's assessment. A reversal in that trend could accelerate Bitcoin's decline.
Bitcoin must hold above $75,000 to keep the bearish scenario off the table. A break below that level, McGlone argues, opens the path toward $10,000 — a zone he identifies as a long-term equilibrium since futures markets launched in 2017.
McGlone has issued similarly contrarian calls in the past. He has repeatedly argued that Bitcoin's correlation with equity markets makes it vulnerable during risk-off periods, a position that puts him at odds with the majority of crypto analysts who view BTC as a hedge against traditional market downturns.
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