Bitcoin may be on the verge of a historic rally, according to crypto veteran Max Keiser, who predicts that the leading cryptocurrency could surge past $200,000. But in a surprising twist, Keiser isn’t celebrating just yet. Instead, he’s sounding the alarm about stablecoins, warning that their rapid growth could have unintended consequences for both Bitcoin adoption and the U.S. economy.

Keiser, a long-time Bitcoin advocate and broadcaster, believes that while stablecoins have become central to the digital asset ecosystem, they may be fueling a quiet shift in global financial power—one that could ultimately weaken the U.S. dollar. Stablecoins, which are typically backed by reserves of U.S. Treasuries, have surged in popularity due to their promise of stability amid crypto market volatility. But Keiser argues that this very stability may be misleading governments and investors about the true state of the economy.

According to Keiser, issuers of stablecoins like Tether are using the interest earned from their U.S. Treasury holdings to buy Bitcoin while it remains relatively cheap. He claims that this quiet accumulation is setting the stage for a dramatic price surge in Bitcoin, while also distorting demand for the dollar. As he sees it, the rising popularity of stablecoins is masking growing vulnerabilities in traditional fiat systems.

This concern comes as the stablecoin market continues to expand at an unprecedented rate. Tether remains the largest stablecoin in circulation, but new entrants are gaining traction, including USD1—a recently introduced stablecoin linked to the Trump-backed World Liberty Financial platform. In just a short time, USD1 has passed the $2 billion market cap mark, signaling strong investor interest. Projections from the U.S. Treasury suggest that the stablecoin market could reach $2 trillion by 2028, underscoring its growing role in global finance.

But Keiser argues this trajectory could derail efforts to secure national Bitcoin holdings. He has long advocated for the creation of a U.S. Strategic Bitcoin Reserve, a move he sees as essential for maintaining economic strength in a digital future. However, he believes political leaders may be distracted by the perceived safety of stablecoins and are missing the bigger picture: Bitcoin’s long-term dominance.

Keiser warns that once Bitcoin crosses the $200,000 threshold, panic buying will likely follow. Governments and individuals who once trusted stablecoins as a safer alternative to volatile crypto assets may suddenly rush into Bitcoin, driving prices even higher. He goes further, suggesting that Bitcoin could eventually reach $2.2 million per coin, fueled by institutional competition and global demand. While such a forecast might sound extreme, Keiser points to ongoing accumulation by firms like MicroStrategy and newer entities like 21 Capital as evidence that the race for Bitcoin dominance is already underway.

Meanwhile, Bitcoin’s market dominance has climbed to its highest level in years, even as short-term volatility continues. The cryptocurrency recently dipped below $95,000, but Keiser remains confident that a breakout is imminent.

In his view, the growing reliance on stablecoins is both a short-term asset and a long-term liability for the U.S. financial system. If policymakers continue to focus on dollar-backed tokens instead of recognizing Bitcoin’s strategic value, they may find themselves unprepared for a global monetary shift already in motion.