Foreign media reported that gold advocate Peter Schiff recently reiterated his bearish outlook on Bitcoin, shifting focus to the stablecoin market. He believes that as USDT’s usage in payments, trading, and cross-border transfers continues to expand, its market capitalization could first surpass Ethereum and eventually catch up to Bitcoin.
The scale of USDT continues to expand.
Schiff posted on social media that Tether’s market cap will soon surpass Ethereum, and possibly Bitcoin as well—it’s just a matter of time. His assessment is based on the premise that the use cases for stablecoins continue to expand, and these assets exhibit far less price volatility than Bitcoin and Ethereum.
According to DeFiLlama data, Tether’s current market capitalization has risen to approximately $187 billion, remaining the largest stablecoin globally. The article notes that USDT is currently widely used for fund transfers, payment settlements, remittances, and digital dollar movements within the cryptocurrency market.
Bitcoin has recently come under pressure.
As Schiff made the above remarks, Bitcoin was undergoing a correction. The report noted that Bitcoin had fallen nearly 15% since early June and recently dropped to around $61,500, reaching its lowest level in about four months.
He also pointed to technology stocks as a source of pressure. Schiff believes that Bitcoin previously benefited from broader gains in technology stocks; if the tech sector correction continues, Bitcoin may face continued pressure, with some capital potentially flowing back into traditional safe-haven assets like gold.
The market remains divided on whether the bottom has been reached.
However, the market is not solely filled with pessimistic views. Scott Melker, host of The Wolf of All Streets, noted that Bitcoin’s weekly Relative Strength Index has entered a low zone commonly seen in previous cycles, similar to levels observed near major bottoms in 2015, 2018, and 2022.
He also noted that oversold conditions do not necessarily mean an immediate price rebound, but they often occur toward the end of a correction. This means that, as the size of stablecoins continues to grow, Bitcoin’s short-term price movement will still depend on the overall performance of risk assets and shifts in market capital preferences.