Mike McGlone Warns Bitcoin Could Fall to $10,000 as Tether Overtakes Ethereum in Market Cap

Bloomberg senior market strategist Mike McGlone has warned that Bitcoin could decline to the $10,000 level over the long term, citing elevated asset prices and macroeconomic conditions that historically precede sharp corrections. McGlone noted that the surge in crypto and stock markets in recent years has reached historic proportions, and that a repeat of past financial bubbles could result in equally sharp pullbacks. He argued that high interest rates keep inflation under control while simultaneously putting downward pressure on bond yields, and that record-high US stock markets could increase inflationary pressures, potentially leading to political consequences.

McGlone also highlighted a structural shift in the digital asset rankings, stating that Tether has surpassed Ethereum by market capitalization to become the second-largest digital asset in the crypto ecosystem, a development he described as a significant indicator of the sector's transformation. According to McGlone, Tether, a US dollar-backed stablecoin, is increasingly taking on a central role in the crypto market. He pointed to the adoption of the dollar as a base layer by crypto assets and the large holdings of US Treasury bonds by stablecoin issuers as factors strengthening ties between the US financial system and the crypto sector, which he characterized as a significant technological advancement.

Referencing the approaches of US President Donald Trump's first term and subsequent administrations toward stablecoins and cryptocurrencies, McGlone argued that Trump has gained a better understanding of the sector's importance over time, paving the way for crypto-friendly policies. He suggested a "lose-lose" scenario may be emerging in the markets as the gap between the Federal Reserve's tightening policy and rising equity valuations continues to widen.

Recalling that Bitcoin has acted as a leading indicator of risk appetite in past cycles, McGlone said that if current macroeconomic conditions worsen, $BTC could face the risk of testing much lower levels. He added that $BTC, which has led the rise in risky assets, could similarly act as a guide in a potential downturn. McGlone did not address $ETH's specific price trajectory beyond the market-cap ranking shift involving Tether.