Bitcoin and Ethereum are facing a formidable challenge as Tether (USDT) steadily approaches their market capitalizations, according to insights from Mike McGlone, a senior macro strategist at Bloomberg Intelligence. His recent analysis highlights Tether’s potential to overtake both leading cryptocurrencies, a scenario he refers to as an unexpected “flippening.”
McGlone asserts that Tether is becoming increasingly prominent in the volatile cryptocurrency landscape, which has seen tremendous growth over recent years. He notes that amidst market uncertainties, investors are gravitating towards stablecoins that offer both stability and utility. Tether currently commands about 58% of the global stablecoin market cap, significantly ahead of competitors like USDC. Together, Tether and USDC account for around 82% of the total market for stablecoins.
In McGlone’s analysis, he expresses confidence that Tether’s Assets Under Management (AUM) will surpass Ethereum’s in 2026 and eventually reach Bitcoin’s market cap. The gap between Tether and Ethereum has narrowed sharply over the past year—Ethereum’s market capitalization is about $272 billion compared to Tether’s approximate $184 billion. Just a year ago, Tether’s market cap was around $144.2 billion, marking a remarkable growth of 27.6% during that timeframe.
While Tether’s outlook appears bright, McGlone has a more cautious view on Bitcoin, describing a potential downturn that could see its value plummet to as low as $10,000. He notes that Bitcoin has remained in a corrective phase since its all-time high in 2025 and emphasizes its correlation with equity markets. With stock market volatility at a notably low level—12.5—McGlone warns that a reversal could precipitate further declines in Bitcoin’s value. He argues that Bitcoin must hold above $75,000 to negate the possibility of a sharp decline towards the $10,000 range, which he considers a long-term equilibrium zone established since the advent of futures markets in 2017.
The cryptocurrency market continues to evolve rapidly, marked by the rise of stablecoins like Tether and the ongoing fluctuations in Bitcoin and Ethereum’s positions. How these developments will unfold remains a critical area of observation for investors and analysts alike.
