Bloomberg Strategist: Tether Overtaking Bitcoin Is Inevitable — Here's Why

Mike McGlone, senior macro strategist at Bloomberg Intelligence, has made a bold claim that could shake the foundations of the crypto market: Tether (USDT) is on a collision course with Bitcoin, and its eventual rise to the top of the cryptocurrency rankings may be unavoidable.

According to McGlone, the rapid expansion of dollar-pegged stablecoins is fundamentally altering the hierarchy within the digital asset space. In his own words, "it could be a matter of time before the dollar token flips Bitcoin, unless crypto's most enduring trend reverses: Tether's AUM surpassing everything." The strategist sees this not as a hypothetical scenario, but as a natural consequence of how the market is evolving.

McGlone has been notably upbeat about the underlying technology driving stablecoins, stating: "The technology is awesome, and it adopted the dollar as its base layer" — a pointed remark aimed at those who believe the global financial system is moving away from dollar dominance.

The analyst has also raised critical questions about the long-term sustainability of speculative cryptocurrencies. He challenged the broader market to consider what distinguishes assets backed by real-world earnings and income from the millions of tokens that, in his view, track nothing of tangible value. This line of reasoning suggests McGlone sees a meaningful reckoning ahead for speculative digital assets.

Notably, Tether has already taken a significant step in this direction. The stablecoin recently surpassed Ethereum (ETH) in market capitalization, briefly claiming the second spot in the global crypto rankings. McGlone commented that this "Tether flippening of Ethereum may be sustained this time," implying the move could be more than just a temporary reshuffling.

On the Bitcoin front, McGlone has not softened his bearish stance. He continues to forecast that BTC could fall as low as $10,000 — a dramatic drop from current levels. The strategist attributes Bitcoin's historical rise largely to an era of near-zero interest rates and aggressive monetary stimulus. With that era now behind us, he argues that speculative risk assets like Bitcoin face a painful and unavoidable deleveraging process.

McGlone's pessimistic outlook extends well beyond crypto markets. He has predicted that WTI crude oil could tumble toward $40 per barrel, driven by a broader downturn in global equity markets. "A top force for a typical low-price-cure cycle in the second half would be a drop in the US stock market," he explained, painting a picture of widespread macro turbulence ahead.

Taken together, McGlone's forecasts suggest a significant reshaping of the financial landscape — one where stablecoins rise to dominance, speculative assets deflate, and traditional commodities face mounting pressure. Whether his predictions prove accurate remains to be seen, but the Bloomberg strategist's track record ensures his views will continue to draw serious attention from both crypto enthusiasts and traditional market observers alike.