As the cryptocurrency market struggles to regain momentum, one strategist is watching for an unusual signal: the steady rise of stablecoins.
A stablecoin is a cryptocurrency designed to maintain a stable value, often pegged to a fiat currency such as the U.S. dollar.
Mike McGlone, senior commodities strategist at Bloomberg Intelligence, believes that the most enduring trend in the cryptocurrency space is not speculative tokens, but Tether’s growing dominance.
His thesis is straightforward;
“Tether will eventually disrupt Bitcoin.”
Related: Why Stablecoins Are Becoming Crucial to Global Payment Systems
A “flip” is when the market capitalization of one cryptocurrency exceeds that of another.
McGlone said Tether’s USDT stablecoin has surpassed most altcoins. Only Ethereum (ETH) and Bitcoin (BTC) remain in the lead.
As of press time on February 13, the market value of USDT was US$184.6 billion.
Objectively speaking, the total market value of stablecoins is US$307.1 billion. The stablecoin second only to USDT is Circle’s USDC, with a market value of US$73.2 billion.
The significance is not in price appreciation but in supply growth and capital positioning. When stablecoin market caps expand while risk assets weaken, it often signals defensive behavior.
McGlone directly linked this to Ethereum’s recent technical collapse. After losing the key $2,500 support level that has been in place since 2024, ETH now targets $1,500 as the next key support level.
If Ethereum falls towards $1,500 and USDT supply continues to expand, Tether could surpass Ethereum in market cap and become the second-largest crypto asset.
This shift will be symbolic. Stablecoins replacing Ethereum will emphasize capital preservation rather than risk taking.
McGlone goes further.
He said that if Bitcoin falls towards $10,000 and Tether’s supply continues to grow, USDT’s market cap may also eventually surpass Bitcoin.
Since October 2025, Bitcoin has suffered frequent sell-offs, from a peak of $124,000 to currently hovering around $68,741, a drop of more than 44%.
McGlone’s scenario would imply a deep bear market characterized by persistent risk aversion, continued demand for dollar-backed liquidity and investors favoring stability over volatility.
Related: Analysts Say Bitcoin Will Meet or Exceed Gold’s Market Cap
This article was originally published by TheStreet on February 13, 2026 and first appeared in the Trading News & Analysis section. Click here to add TheStreet as your preferred source.
