Bloomberg’s McGlone Says Tether Could Threaten Bitcoin After Overtaking Ethereum

Mike McGlone, Bloomberg’s senior macro strategist, said Tether’s dollar-pegged stablecoin USDT could eventually threaten Bitcoin’s market capitalization.

McGlone told U.Today on June 7 that the recent bull run in digital assets is entering its final phase and that Bitcoin could face a sharp correction as the macroeconomic backdrop worsens.

He pointed in particular to USDT briefly surpassing Ethereum earlier this month during the market selloff to become the second-largest crypto asset by market capitalization. In his view, the shift may not be a temporary anomaly but a sign of a structural change in the crypto market.

“The technology itself is great,” McGlone said. “The crypto market has adopted the dollar as its base layer and is investing in US Treasuries. There is no reason for a rational American to oppose that.”

He described USDT’s growth as part of a natural evolution. Stablecoins are expanding beyond trading tools and increasingly serving as stores of value and payment infrastructure, helping drive market capitalization higher.

McGlone was negative on Bitcoin and other risk assets. “The recent rally was a pump of historic proportions,” he said. “If the history of bubbles repeats itself, the corresponding hangover will also be unavoidable.”

He also argued that the recent crypto rally is mathematically bound to end in a major correction, adding that the possibility of Bitcoin falling to $10,000 over the long term cannot be ruled out.

McGlone said the macro environment is also becoming less favorable for risk assets. “High interest rates curb inflation and put downward pressure on bond yields,” he said. “Politicians may also be starting to recognize that a stock market hitting record highs is adding to the burden on consumers and fueling inflation.”