Mike McGlone says Tether’s growth could challenge Bitcoin’s market dominance. Tether briefly surpassed Ethereum during the recent cryptocurrency market sell-off. McGlone believes macroeconomi
Bloomberg Senior Macro Strategist Mike McGlone has warned that Bitcoin could eventually fall to $10,000 as Tether continues expanding its influence across the cryptocurrency market. According to McGlone, the stablecoin’s steady growth is positioning it to challenge Bitcoin’s dominance in ways many investors may not expect. His warning comes as Tether recently achieved a significant milestone. During the market downturn in early June, USDT briefly surpassed Ethereum by market capitalization, making it the second-largest cryptocurrency in the world.
According to McGlone, that development highlights how stablecoins are becoming increasingly important within the broader digital asset industry. He argued that cryptocurrencies have largely adopted the U.S. dollar as their foundation, while stablecoin issuers continue investing heavily in U.S. Treasury securities.
McGlone described this trend as a logical evolution of the market. He noted that stablecoins combine blockchain technology with the stability of traditional financial instruments, making them attractive to a growing number of users and institutions. Moreover, he suggested that Tether’s rise reflects a shift in investor preferences during periods of economic uncertainty. As volatility increases, many participants appear more willing to hold dollar-backed assets than speculative cryptocurrencies.
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Beyond Tether’s growing market presence, McGlone believes broader economic forces could create additional pressure on Bitcoin and other risk assets. According to the strategist, the cryptocurrency market is still dealing with the consequences of one of the largest speculative rallies in financial history. He described the previous crypto bull market as historic and argued that major market bubbles often experience equally significant corrections. Consequently, he expects downside risks to remain elevated despite improving regulatory conditions and political support for digital assets.
Additionally, McGlone pointed to changing economic priorities in the United States. He suggested policymakers may place greater emphasis on controlling inflation than supporting higher asset prices. According to McGlone, strong stock market performance can contribute to inflationary pressures by increasing consumer spending and overall financial optimism. As a result, authorities may become more comfortable with weaker performance across risk-sensitive markets.
The strategist also argued that political considerations could influence economic policy decisions. He believes inflation remains a key concern for voters, making it an important issue for elected officials. While many market participants remain optimistic about Bitcoin’s long-term future, McGlone maintains that substantial downside risks remain. According to his outlook, a severe correction could eventually drive Bitcoin toward the $10,000 level if broader macroeconomic conditions deteriorate further.
Tether’s brief move ahead of Ethereum has renewed debate about the growing role of stablecoins in the cryptocurrency industry. At the same time, McGlone’s prediction highlights how concerns about economic conditions continue shaping expectations for Bitcoin’s future direction.
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