Senior Bloomberg market strategist Mike McGlone has issued a stark warning that Bitcoin could plummet to the $10,000 level in the long term, as part of a broader market assessment that highlights a shifting hierarchy among digital assets. McGlone emphasized that Tether (USDT) has now surpassed Ethereum in market capitalization, becoming the second-largest cryptocurrency after Bitcoin and pushing Ethereum to third place—a shift he called a significant indicator of transformation in the crypto sector.
According to McGlone, Tether’s rise signals the growing centrality of U.S. dollar-backed stablecoins in the crypto ecosystem. He pointed out that stablecoin issuers' large holdings of U.S. Treasury bonds are strengthening ties between the traditional financial system and the crypto market, describing the dollar’s adoption as a base layer for crypto assets as a major technological advancement.
McGlone referenced the evolving stance of U.S. administrations toward crypto, noting that former President Donald Trump’s early skepticism has given way to a more favorable policy environment in the current cycle. However, he cautioned that the historic surge in crypto and stock markets resembles past financial bubbles, and that similarly sharp corrections could follow. He noted that high interest rates continue to contain inflation while pressuring bond yields, and that record-high U.S. equity valuations could stoke inflationary pressures with political consequences.
In McGlone’s view, a “lose-lose” scenario may be unfolding, where Bitcoin—having led the risk-asset rally—could also lead a downturn if macroeconomic conditions worsen, potentially testing levels far below its recent highs.
