Mike McGlone Warns Bitcoin Could Drop to $10,000 as Tether Overtakes Ethereum

Senior market strategist Mike McGlone, in his latest assessment of the crypto markets, has issued a notable warning that Bitcoin could fall to the $10,000 level over the long term. McGlone noted that Tether has surpassed Ethereum by market capitalization to become the second-largest digital asset, which he described as a meaningful indicator of how the sector is reshuffling itself.

According to McGlone, Tether — the dollar-backed stablecoin — is taking on an increasingly central role in crypto. He pointed to stablecoins' growing holdings of US Treasury bonds and the broader adoption of the dollar as a base layer for digital assets as evidence that the ties between the US financial system and crypto are tightening. Whether that is a technological advancement or a regulatory headache waiting to happen, he left for the reader to decide.

In related news, on-chain sleuth ZachXBT implied that Arthur Hayes is a "scammer," alleging that Hayes sold all the altcoins he had previously praised. Both sides continue to disagree, loudly, on Crypto Twitter.

Turning to policy, McGlone argued that US President Donald Trump has gained a better understanding of the sector's importance since his first term, setting the stage for crypto-friendly policies. He added 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.

High interest rates, the analyst noted, are keeping inflation in check while simultaneously putting downward pressure on bond yields. He suggested that record-high US stock markets could increase inflationary pressures, potentially leading to political consequences.

McGlone framed the current setup as a "lose-lose" scenario, warning that Bitcoin — which has led the rise in risky assets — could similarly act as a guide in a potential downturn, just as it has in past cycles. If macroeconomic conditions worsen, he said, BTC may face the risk of testing much lower levels.

*This is not investment advice.