A modest bitcoin sale by Strategy has drawn outsized attention across digital asset markets, after Standard Chartered said the move may mark the start of ether outperforming bitcoin.
The company disclosed on June 1 that it sold 32 bitcoin during the final week of May, as reported by HodlFM. The amount represented a fraction of its 843,706 bitcoin holdings, yet the reaction in relative pricing between Bitcoin and Ethereum stood out.
Geoffrey Kendrick, global head of digital assets research at Standard Chartered, wrote in a note shared Tuesday that the market response carried more weight than the transaction size.
"I see yesterday as being the start of ETH outperformance v BTC," he said.
Bitcoin fell below $70,000 after the disclosure, while ether held relatively stable. Data referenced by the bank showed that the ETH-BTC move ranked among the largest relative gains for ether on a day when bitcoin declined since early 2024. Kendrick noted that only 23 larger such sessions occurred over that period.
Relative performance gains momentum
The ETH-BTC ratio has remained under pressure since 2022, when Ethereum shifted to a proof-of-stake model. The ratio reached a five-year low in April 2025 after ether lost ground against bitcoin for an extended period. Over the past year, ether recovered more than 60% from those lows.
Kendrick now expects the ratio to rise to 0.040 by the end of the year from around 0.028. That projection implies stronger relative performance for ether even if both assets move in the same direction.
The analyst maintained that view regardless of Strategy’s next steps.
"I think this will be the case even if (as is likely) MSTR this week buys a large multiple of the 32 BTC it sold last week," Kendrick said.
Treasury models reveal structural divide
The sale also highlighted a deeper distinction between bitcoin and ethereum treasury strategies. Kendrick pointed to the absence of yield in bitcoin holdings as a structural limitation for companies such as Strategy. Firms that hold bitcoin often depend on price appreciation or capital markets activity to sustain operations.
Ethereum presents a different model. Ether can be staked to earn rewards, which currently sit near 3% annually. That mechanism allows treasury firms to generate income without liquidating assets.
Kendrick said this feature creates "zero need" for Ethereum treasury companies to "ever sell" their holdings. The difference has direct implications for valuation metrics such as multiples of net asset value, or mNAV.
According to the bank, major Ethereum treasury firms such as Bitmine Immersion and SharpLink Gaming have recently traded below Strategy on that metric. Kendrick expects that gap to reverse as investors place greater weight on recurring income from staking.
Long-term outlook tied to network activity
Standard Chartered has maintained its long-term price targets for ether, with projections of $4,000 by the end of 2026 and $40,000 by 2030. Kendrick linked those expectations to Ethereum’s role in stablecoins, tokenized real-world assets, and decentralized finance.
The bank drew a comparison in a previous report between Ethereum’s current position and Amazon during the 2001 dot-com downturn. The analogy focused on improving internal metrics despite weak price performance at the time.
Institutional interest has also shifted toward sectors where Ethereum maintains a strong presence. Asset managers such as BlackRock have acknowledged Ethereum’s role in tokenization infrastructure.
Market reaction extends beyond crypto prices
Strategy’s disclosure also affected equity markets. Shares of the company fell more than 7% on Tuesday, extending losses from the previous session. The stock has dropped sharply over recent trading days, in line with bitcoin’s decline.
Bitcoin traded near $67K at the time of reporting, down more than 6% over 24 hours, while ether hovered around $1,870 over the same period, according to pricing data by HodlFM.
The divergence between the two assets has renewed focus on whether a broader shift in market leadership could take shape. In previous cycles, bitcoin rallies often preceded stronger performance from alternative assets, a pattern sometimes described as altcoin rotation.
Kendrick’s note framed the current moment as a potential inflection point rather than a continuation of that historical cycle. The signal, he argued, came from how markets responded to a small but symbolic transaction.
Outlook remains tied to relative strength
The ETH-BTC ratio remains central to the bank’s outlook. Kendrick said recent price action may represent a turning point after years of underperformance.
The call arrives as investors continue to debate Ethereum’s ability to regain momentum against bitcoin. The bank’s projection suggests that relative strength could build even without a broad market rally.
For now, the focus remains on whether the recent shift in price behavior will hold. Strategy’s sale did not alter its position as the largest corporate holder of bitcoin. However, the market response has added a new dimension to the ongoing competition between the two largest digital assets.
Kristian Koch
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