The dominance of Bitcoin and Ethereum is being directly challenged in a new perspective from Bloomberg Intelligence strategist Mike McGlone, who believes than an unexpected contender is positioning itself to surpass both. Tether USDT’s market capitalization is steadily closing in on Ethereum, and Mike McGlone believes the stablecoin’s rise is just beginning, while the two largest cryptocurrencies may go in the opposite direction.
The unlikely contender gains ground
Mike McGlone, senior macroeconomic strategist at Bloomberg Intelligence, has pointed out Tether (USDT) as the asset most likely to reshape the crypto market hierarchy in the near future. The cryptocurrency market has grown enormously in recent years and is now flooded with millions of tokens. However, in a recent note published this week, McGlone noted that capital is gravitating towards instruments that maintain stability and utility, especially in uncertain macroeconomic conditions, and Tether’s USDT is leading the charge.
Related reading
Interestingly, McGlone also talked about a radical change in the ranks of the cryptocurrency market. However, this sea change is not the long-speculated scenario in which Ethereum outperforms Bitcoin, but rather a much less anticipated one in which the dollar-backed stablecoin quietly outperforms both. “I expect the ‘change’ to continue, with Tether’s AUM surpassing Ethereum in 2026 and eventually Bitcoin,” McGlone wrote.
The gap between the two assets. has been reduced considerably in the last year. Ethereum’s market capitalization currently stands at approximately $272 billion. Meanwhile, Tether’s market capitalization is around $184 billion.
This time last year, the stablecoin had a market capitalization of $144.2 billion, which is a growth of 27.6% over the past year. Tether currently controls around 58% of the global stablecoin market capitalization, and along with USDC, the two represent around 82% of the total stablecoin limit.
Bitcoin’s long road back to $10,000
McGlone combines this stablecoin outlook with a notably bearish stance on Bitcoin. According to him, there is a strong possibility that the price of Bitcoin will fall to $10,000. Bitcoin has been trading in a prolonged corrective phase following its 2025 all-time high, and a chart released alongside McGlone’s commentary shows that Bitcoin has always led both the ups and downs of the stock market, and if stocks are recovering, Bitcoin may follow suit.
Related reading
The chart below shows Bitcoin’s yearly candle alongside the S&P 500 index and its 180-day volatility reading. Stock market volatility, which stands at 12.5, is too low for 2026. A reversal of that trend could lead to further declines for Bitcoin, which is already showing signs of rejection above $70,000.
Bitcoin annual chart. Source: @mikemcglone11 In X
Bitcoin must stay above $75,000 to invalidate the scenario of a drop to $10,000. Failure to do so, according to McGlone, opens the way to a deeper reversal to the $10,000 range, which has stood out as a long-term equilibrium zone since the introduction of futures markets in 2017.
Featured image created with Dall.E, chart from Tradingview.com
