Bloomberg Intelligence senior macro strategist Mike McGlone believes that Tether (USDT) is on track to become the world’s biggest cryptocurrency.
McGlone has argued that the dominance of dollar-pegged stablecoins is reshaping the entire crypto hierarchy. He is convinced that “it could be a matter of time before the dollar token flips Bitcoin, unless crypto’s most enduring trend reverses: Tether’s AUM surpassing everything.”
“The technology is awesome, and it adopted the dollar as its base layer (note to the dedollarization crowd),” McGlone added.
The analyst has questioned the long-term viability of speculative tokens, asking, “What stops the tokenization proliferation, where tokens tracking real assets with earnings or income stand alongside millions of cryptos worth $ billions but tracking nothing?”
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Recently, Tether (USDT) briefly overtook Ethereum (ETH) to become the second-largest cryptocurrency by market capitalization.
McGlone has noted that the “Tether flippening of Ethereum may be sustained this time.”
Collapsing to $10,000?
McGlone has doubled down on his bearish prediction that Bitcoin (BTC) is on track to collapse all the way to $10,000.
As noted by McGlone, the asset grew rapidly during an unprecedented era of zero-interest-rate policies and massive liquidity injections.
McGlone maintained that speculative risk assets of the like of Bitcoin would face an inevitable deleveraging process.
Crude Oil and ‘pump-then-dumps’
McGlone’s bearish outlook is not limited solely to the cryptocurrency sector; it extends across major global commodities and equities.
The analyst has predicted that WTI crude could collapse toward $40 a barrel.
This commodities slump will be caused by a broader correction in the equities market, according to McGlone. “A top force for a typical low-price-cure cycle in 2H would be a drop in the US stock market,” the pundit explained.
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