Bitcoin's Throne Shaken: Is THIS New Rival Set to Steal 40% of Its Market Share?

As the cryptocurrency markets grapple with a lack of momentum, an unusual signal has emerged: the steady rise of stablecoins. A stablecoin, typically pegged to a fiat currency like the U.S. dollar, is designed to maintain a consistent value, serving as a refuge for investors during times of volatility.

Mike McGlone, a Senior Commodity Strategist at Bloomberg Intelligence, has been closely analyzing this trend. He argues that Tether's dominance is not merely a speculative bubble but rather a sign of a more enduring shift in the crypto landscape. His assertion is clear and provocative:

"Tether will eventually flippen Bitcoin."

The term "flippening" refers to one cryptocurrency surpassing another in terms of market capitalization. Currently, Tether's USDT stablecoin has eclipsed most alternative cryptocurrencies (or altcoins), trailing only behind Bitcoin (BTC) and Ethereum (ETH). As of February 13, 2026, the market cap of USDT stands at an impressive $184.6 billion. For context, the total stablecoin market cap is approximately $307.1 billion, with Circle's USDC following Tether at about $73.2 billion.

What’s particularly noteworthy is not just the price appreciation of these assets, but rather the implications of their supply growth in the current market climate. McGlone highlights that when stablecoin market caps expand while risk assets decline, this often signals a defensive behavior among investors looking to preserve capital.

This trend has coincided with recent troubles for Ethereum, which has seen a significant technical breakdown. After failing to maintain a pivotal support level of $2,500 that it held since 2024, ETH is now poised to test a new support level around $1,500. Should Ethereum continue its downward trajectory while USDT supply expands, McGlone suggests that Tether could soon surpass Ethereum in market cap, making it the second-largest cryptocurrency asset. Such a transition would symbolize a shift toward capital preservation over speculative risk-taking.

McGlone doesn’t stop there. He posits a scenario that could see Tether even surpass Bitcoin in market cap if Bitcoin were to decline further, potentially approaching $10,000. Since reaching a peak of $124,000 in October 2025, Bitcoin has suffered frequent sell-offs and currently hovers around $68,741, reflecting a decline of more than 44%.

If McGlone's predictions hold true, this would indicate a prolonged bear market characterized by continued risk-off sentiment among investors, persistent demand for dollar-backed liquidity, and a growing preference for stability over volatility. Such dynamics could fundamentally reshape the cryptocurrency landscape, as stablecoins like USDT gain mainstream traction in payment systems both in the U.S. and globally.

As we grapple with these developments, investors and analysts alike will be watching closely to see if Tether can indeed "flippen" Bitcoin and what that would mean for the future of cryptocurrency as a whole. The implications extend beyond mere market capitalization; they signal a critical juncture in how cryptocurrencies are viewed and utilized in the broader financial ecosystem.