Mike McGlone, senior macro strategist at Bloomberg Intelligence, has argued that the US dollar-pegged stablecoin Tether is on track to overtake Bitcoin at the top of the global cryptocurrency rankings. According to McGlone, the growing dominance of dollar-backed stablecoins is reshaping the balance of power in the crypto market.
Tether’s path to the top
McGlone suggested that if Tether’s total assets under management continue to rise at their current pace, the possibility of Tether surpassing Bitcoin in market value could become a reality. The key question, he said, is whether the long-standing expansion trend centered around Tether in the crypto market will reverse.
Emphasizing the strength of blockchain technology, McGlone pointed out that, at its core, this structure still relies on the US dollar, which he described as contradicting the frequent calls for dedollarization.
Tether is distinguished as one of the most widely used stablecoins in the crypto ecosystem, aiming to maintain a 1:1 peg with the US dollar. Its extensive use in trading pairs, exchange transfers, and on-chain liquidity has made it a central player in shaping market structure.
The analyst further remarked that the growing popularity of tokens backed by income-generating physical assets could make the long-term outlook for millions of more speculative cryptocurrencies increasingly challenging. This perspective signals a broader questioning of the sustainability of speculative tokens in the industry.
Tether edges past Ethereum, Bitcoin warning
Recently, Tether briefly overtook Ethereum to become the second-largest cryptocurrency by market capitalization. McGlone believes this shift could be more permanent in favor of Tether this time around.
While noting Tether’s increasing lead over Ethereum may become lasting, McGlone also maintained a bearish scenario for Bitcoin.
Reaffirming his bearish outlook, McGlone forecast that Bitcoin’s price could drop as low as $10,000. He observed that Bitcoin experienced rapid growth during a period dominated by zero-interest-rate policies and unparalleled liquidity expansion. For this reason, he warned that Bitcoin could face a steeper correction associated with the broader unwinding of risk assets.
The table below summarizes the key highlights from McGlone’s analysis.
| Asset or market | Main insight | Level |
|---|---|---|
| Tether | Potential to surpass Bitcoin | Scenario for market lead |
| Tether and Ethereum | Brief reshuffling of rankings | Second place |
| Bitcoin | Bearish expectation | $10,000 |
| WTI crude oil | Projection of decline | $40 per barrel |
Weakness expected beyond crypto
McGlone’s cautious stance is not limited to digital assets. He also anticipates a broader correction in global commodity and equity markets. In this context, he predicted WTI crude oil could drop to $40 per barrel in the coming period.
According to McGlone, one of the main factors that could lead to a decline in commodities is potential weakness in the US stock market during the second half of the year. He argued that the classic cycle—where lower prices trigger self-correcting effects—could once again come into play in the current environment.
