A Historic Moment Has Arrived: Ethereum Is Poised to Become the Third-Largest Cryptocurrency – Bloomberg Veteran Mike McGlone Weighs In

Senior market strategist Mike McGlone, in his latest assessment of the cryptocurrency markets, issued a notable warning that Bitcoin could fall to the $10,000 level in the long term.

McGlone stated that Tether has surpassed Ethereum by market capitalization to become the second-largest digital asset in the crypto ecosystem, which he described as a significant indicator of the transformation within the sector.

According to McGlone, Tether, a US dollar-backed stablecoin, is increasingly taking on a central role in the crypto market. The analyst notes that the adoption of the dollar as a base layer by crypto assets and the large holdings of US Treasury bonds by stablecoin issuers are strengthening ties between the US financial system and the crypto sector, which he describes as a significant technological advancement.

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The analyst, referring to the approaches of US President Donald Trump’s first term and subsequent administrations towards stablecoins and cryptocurrencies, argued that Trump has gained a better understanding of the sector’s importance over time, paving the way for crypto-friendly policies in the current period.

However, 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 corrections. According to the analyst, high interest rates keep inflation under control while simultaneously putting downward pressure on bond yields.

McGlone also suggested that record-high US stock markets could increase inflationary pressures, potentially leading to political consequences. Noting that a “lose-lose” scenario may be emerging in the markets, the analyst stated that Bitcoin, which has led the rise in risky assets, could similarly act as a guide in a potential downturn.

McGlone, recalling that Bitcoin has acted as a leading indicator of risk appetite in past cycles, said that if current macroeconomic conditions worsen, BTC could face the risk of testing much lower levels.

*This is not investment advice.

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