Why Bitcoin’s Recent Sale Could Signal a Shift in Crypto Markets
A recent bitcoin sale by Strategy may mark the start of ether outperformance, according to Standard Chartered’s head of digital asset research, Geoff Kendrick. The sale, although small, could signal a broader shift in crypto markets, with ether potentially regaining momentum. Kendrick notes that ether significantly outperformed bitcoin on the day of the sale, despite broader weakness in crypto prices.
Since Monday, ether has appreciated 5% relative to bitcoin, with Kendrick expecting the ETH-BTC ratio to climb to 0.04 by year-end. This implies that ether could outperform bitcoin by more than 40% even if both assets move higher or lower. Kendrick’s long-term ETH price target is $4,000 by the end of 2026 and $40,000 by 2030.
Why Ether May Outperform Bitcoin
Kendrick argues that the significance of Strategy’s bitcoin sale lies in what it reveals about the different economics of bitcoin and ether treasury firms. Bitcoin treasury companies rely largely on bitcoin price appreciation and capital markets activity to support their business models, whereas ether can be staked to earn yield, currently around 3% annualized. This provides a source of income without requiring firms to liquidate assets, making ether treasury companies more self-sustaining than their bitcoin-focused peers.
For example, Tom Lee’s Bitmine, the largest Ethereum treasury, has amassed a $11 billion ETH stash without issuing any debt, with staking operations generating roughly $258 million in annualized revenue. Kendrick expects investors to reward ether treasury firms for generating recurring income from their holdings, helping close the valuation gap over time.
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By using EcoPool, investors can diversify their portfolios and earn rewards in the form of $ECP, which can be used to participate in the EcoPool network. This can help investors earn passive income and potentially outperform other assets, such as bitcoin. Kendrick’s forecast of ether outperforming bitcoin highlights the potential benefits of investing in EcoPool and earning rewards through cloud mining.
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Bitcoin vs. Ethereum digital asset treasuries
While Strategy’s bitcoin sale has rattled the market, Kendrick argued that the significance of the transaction isn’t the $2.5 million in BTC that changed hands, but what it reveals about the different economics of bitcoin and ether treasury firms.
Strategy (MSTR) and other bitcoin treasury companies rely largely on bitcoin price appreciation and capital markets activity to support their business models. Because bitcoin does not generate yield, treasury firms may occasionally need to sell holdings or raise capital to cover expenses and obligations.
Read more: Strategy sparked panic with bitcoin sale, but analysts say it was ‘immaterial’
Meanwhile, ETH can be staked to earn yield, currently around 3% annualized, providing a source of income without requiring firms to liquidate assets.
For example, Tom Lee’s Bitmine (BMNR), the largest Ethereum treasury, amassed a $11 billion ETH stash without issuing any debt. While that bet is deeply underwater, the firm estimates its staking operations generate roughly $258 million in annualized revenue, with projected rewards approaching $300 million annually through its MAVAN staking platform.
Kendrick argued that staking income makes ether treasury companies more self-sustaining than their bitcoin-focused peers. While Ethereum treasury firms such as Bitmine and SharpLink Gaming (SBET) currently trade at lower premiums than Strategy (MSTR), he expects investors to reward them for generating recurring income from their holdings, helping close that valuation gap over time.
Read more: Saylor’s Strategy sold bitcoin for the first time since 2022. These firms are still buying
