Peter Schiff Predicts USDT Could Overtake Bitcoin

Bitcoin critic Peter Schiff has once again shared a cryptic take on Bitcoin’s future. This time, the economist believes Tether’s USDT could eventually grow larger than both Ethereum and Bitcoin by market cap. 

His comments come as stablecoin adoption continues to expand while Bitcoin drops nearly 15% since the beginning of this month.

Schiff Sees Stablecoins Growing Faster Than Crypto Assets

In a recent post, Schiff argued that the rapid growth of Tether could eventually push it ahead of the crypto market’s biggest assets.

“The market cap of Tether will soon surpass the market cap of Ethereum. It will eventually surpass the market cap of Bitcoin, too. The only question is how long it will take.”

His argument centers on the continued rise of stablecoins, which are increasingly being used for payments, trading, remittances, and digital dollar transfers. 

Unlike Bitcoin and Ethereum, whose values fluctuate daily, USDT is designed to maintain a one-dollar peg, making it a preferred option for many users moving money across crypto markets.

Data from DeFiLlama shows Tether’s market capitalization has already climbed to roughly $187 billion, making it the largest stablecoin in the world.

Bitcoin Sell-Off Backs Schiff’s Argument

Schiff’s comments arrive during a difficult period for Bitcoin. The largest cryptocurrency has fallen nearly 15% since the start of June and recently dropped to around $61,500, its lowest level in roughly four months. 

Schiff believes weakness in technology stocks could create additional pressure.

“It looks like the correction in tech stocks has finally begun,” arguing that Bitcoin benefited heavily from the broader technology rally. If tech stocks continue falling, Schiff expects Bitcoin to struggle while investors move toward traditional safe-haven assets such as gold.

Wall Street sees signs of a Potential Bottom

Not everyone shares Schiff’s bearish outlook.

Scott Melker, host of The Wolf Of All Streets, noted that Bitcoin’s weekly Relative Strength Index has entered levels that historically appeared near major market bottoms in 2015, 2018, and 2022.

He noted that oversold conditions do not guarantee an immediate rebound, but they often appear during the later stages of a correction.