Bitcoin and Ethereum Market Insights
Jeff Kendrick, who leads digital asset research at Standard Chartered, remarked that despite the relatively small Bitcoin sales by Strategy (MSTR) beyond 2022, which total around $58 billion, there might be broader implications for the cryptocurrency market based on current trends.
In his client communication, Kendrick highlighted the notable performance of Ether (ETH), stating that it has outpaced Bitcoin recently. On the same day the sale was made public, there was a general downturn in cryptocurrency values, yet ETH managed to increase by 5% compared to Bitcoin, which sat at $67,069.86 that day.
This uptick in Ether’s value marked the largest rally against Bitcoin since early 2024, particularly during a period when Bitcoin itself saw a decline.
“I’ve noticed on Monday that Ether has begun to outperform Bitcoin,” Kendrick noted.
The current market discussion revolves around whether Ether can sustain this momentum after some time lagging behind Bitcoin. Since the Ethereum network switched from a mining-focused proof-of-work system to a proof-of-stake model in September 2022, its value has dropped significantly, falling 66% against Bitcoin and hitting a five-year low in April 2025. However, there’s a positive shift as ETH has rebounded more than 60% from these lows over the past year.
Kendrick forecasts that ETH could reach $4,000 by the end of 2026 and even $40,000 by 2030. He anticipates the ETH to BTC ratio will rise from its current position of 0.028 to 0.04 by year’s end, suggesting that Ether’s performance will exceed that of Bitcoin by over 40%, despite potential fluctuations in both assets.
This isn’t Kendrick’s first optimistic perspective on Ether’s potential. Earlier this year, he pointed to the US Clarity Act as a significant development that could enhance regulations in the sector, benefiting digital assets like ETH as a new era for decentralized finance unfolds.
Digital Asset Treasury Dynamics
While Strategy’s Bitcoin sale caused some alarm within the market, Kendrick emphasized that the more important takeaway wasn’t the transfer of $2.5 million in BTC, but rather what it highlighted about the differing economic models of Bitcoin and Ether treasury firms.
Companies like Strategy (MSTR), which focus heavily on Bitcoin, typically depend on rising Bitcoin prices and market activities. Since Bitcoin doesn’t provide any yield, these treasury firms might have to offload some assets or seek external funding to manage their costs.
In contrast, Ether can be staked to earn a yield, which is currently around 3% annually, providing a means for companies to generate income without needing to liquidate assets. A notable example is Bitmine (BMNR), which holds $11 billion in ETH and operates without any debt, pulling in around $258 million yearly from staking and projecting possible rewards of $300 million per year through the MAVAN staking platform.
Kendrick argues that this staking revenue contributes to making Ether treasury firms more self-sufficient compared to their Bitcoin-focused counterparts. While Ethereum treasuries like Bitmine and SharpLink Gaming (SBET) are presently traded at a lower premium than Strategy (MSTR), he believes investors will eventually favor companies that generate recurring income, helping to narrow the valuation gap in time.
