The dominance of Bitcoin and Ethereum is being directly challenged in a new outlook from Bloomberg Intelligence strategist Mike McGlone. An unexpected competitor He is in a position to overtake both. With Tether USDT’s market capitalization steadily closing in on Ethereum, Mike McGlone believes the stablecoin’s rise is only just beginning, but the two largest cryptocurrencies could be headed in opposite directions.
Unlikely candidate gains ground
Mike McGlone, senior macro strategist at Bloomberg Intelligence, said: selected Tether (USDT) is the asset most likely to reshape the hierarchy of the cryptocurrency market in the near future. The crypto market has grown significantly in recent years and is now flooded with millions of tokens. However, in a recent note issued this week, McGlone noted that capital is gravitating toward products that maintain stability and utility, especially in an uncertain macro environment, with Tether's USDT leading the way.
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Interestingly, McGlone also talked about the reversal of rankings in the crypto market. However, this reversal is not the long-speculated scenario in which Ethereum overtakes Bitcoin, but the much less expected scenario in which the dollar-backed stablecoin quietly outperforms both. “We expect the 'inversion' to continue, with Tether's assets under management exceeding Ethereum and ultimately Bitcoin by 2026,” McGlone wrote.
Gap between two assets It has become quite narrow In the past year. Ethereum's market capitalization is currently approximately $272 billion. Tether, on the other hand, has a market capitalization of about $184 billion.
This time last year, stablecoins had a market capitalization of $144.2 billion, growing 27.6% over the past year. Tether currently controls approximately 58% of the global stablecoin market capitalization. In cooperation with USDC, These two account for approximately 82% of the total stablecoin cap.
Bitcoin’s long road back to $10,000
McGlone combines this stablecoin outlook with a significantly bearish stance on Bitcoin. According to him, it is very likely that the price of Bitcoin will crash to $10,000. Bitcoin has been in an extended correction since reaching its all-time high in 2025, and the chart accompanying McGlone's comments shows that Bitcoin consistently leads both the rise and fall of the stock market, and could follow if stocks reverse.
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The chart below shows Bitcoin's annual candlestick versus the S&P 500 index and its 180-day volatility measurement. Stock market volatility is 12.5, which is too low for 2026. If this trend reverses, it could already lead to a further decline in Bitcoin. showing signs of rejection Over $70,000.
Bitcoin annual chart. Source: @mikemcglone11 from X
Bitcoin would need to sustain above $75,000 to invalidate the crash scenario to $10,000. Failure to do so opens the door to a deeper return to the $10,000 level, McGlone said, which he has emphasized since the introduction of the futures market in 2017 as a long-term equilibrium zone.
Featured image created by Dall.E, chart on Tradingview.com
