Bloomberg Intelligence senior commodity strategist Mike McGlone issued a dual warning: Tether (USDT) could surpass Bitcoin in market capitalization if its total assets under management continue their current growth trajectory, while Bitcoin itself faces a possible decline to $10,000. The views were published in a report dated June 27.
Tether's Path to the Top
McGlone suggested that if Tether's assets under management maintain their current pace, overtaking Bitcoin's market cap is a realistic scenario. The key question, he said, is whether the expansion trend centered around Tether will reverse. He emphasized that blockchain technology still depends on the US dollar, contradicting calls for de-dollarization.
Tether is a widely used stablecoin pegged 1:1 to the dollar, playing a central role in trading pairs, exchange transfers, and on-chain liquidity. McGlone added that the growing popularity of tokens backed by income-generating physical assets could make the long-term outlook for speculative cryptocurrencies more challenging.
Edging Past Ethereum, Bitcoin Warning
Recently Tether briefly surpassed Ethereum to become the second-largest cryptocurrency by market cap. McGlone believes this shift could be permanent, with Tether's lead over Ethereum solidifying. However, he maintained a bearish view on Bitcoin, forecasting a price drop to $10,000.
McGlone noted that Bitcoin surged during a period of zero-interest-rate policies and unprecedented liquidity expansion. As risk assets deleverage broadly, Bitcoin could face a steep correction. This aligns with his bearish outlook for crude oil, expecting WTI to fall to $40 per barrel.
Weakness Beyond Crypto
McGlone's caution extends beyond digital assets. He anticipates a broader correction in global commodity and equity markets, driven by potential weakness in US stocks during the second half. He argued that the classic cycle of lower prices triggering self-correcting effects may apply in the current environment.
Investors should note that these predictions represent McGlone's personal views and not investment advice. Cryptocurrency markets carry high volatility; thorough due diligence is essential.