Standard Chartered Predicts Ethereum Could Outperform Bitcoin Following Strategy’s BTC Sale
Highlights
- Standard Chartered's Geoffrey Kendrick said that Staretgy's BTC sale could be the start of Ethereum's outperformance of Bitcoin.
- The analyst recently compared Ethereum's current setup to Amazon's during the dot-com bubble.
- BTC has dropped to as low as $68,000 today while ETH hovers above $1,900.
Standard Chartered’s Global Head of Digital Assets Research, Geoffrey Kendrick, has predicted that Ethereum could begin to outperform Bitcoin following Strategy’s BTC sale. This comes amid BTC’s latest decline to as low as $68,000 while ETH and other altcoins hold strong above critical levels.
Standard Chartered Analyst Says Ethereum Could Begin To Outperform Bitcoin
In a note to clients, the Standard Chartered analyst said that he sees Strategy’s BTC sale as being the start of Ethereum’s outperformance against Bitcoin. Notably, ETH has so far underperformed and has recorded a larger year-to-date (YTD) loss than BTC, which is down 22% YTD.
However, Kendrick believes that Ethereum is about to see a reversal against BTC following Strategy’s sale of 32 BTC. “Days like yesterday form important turning points for ETH-BTC,” the analyst said.
The analyst also mentioned that his view of Ethereum’s potential outperformance won’t change even if Strategy were to rebuy more Bitcoin than it sold recently. It is worth noting that he also recently compared ETH’s current setup to that of Amazon’s during the dot-com bubble.
Kendrick noted that Ethereum’s fundamentals continue to improve even if its price doesn’t reflect these bullish fundamentals. Bitmine’s Chairman, Tom Lee, also echoed a similar sentiment amid the Ethereum treasury firm’s latest ETH purchase, noting that the price doesn’t reflect the strengthening of the network’s fundamentals.
Meanwhile, the Standard Chartered analyst’s prediction comes amid Bitcoin’s decline, with BTC dropping below $70,000 since Strategy announced the BTC sale. At the same time, Ethereum has held steady, down less than 2% today, while BTC is down almost 5% on the day, according to TradingView data.
How ETH DATs Have The Upper Hand
Kendrick also alluded to how the Ethereum treasury firms have an advantage over their Bitcoin counterparts. He noted that the former can stake their ETH holdings and earn yields, and so there is no need for them to ever offload their holdings. BTC treasury firms, on the other hand, do not have such a luxury.
The Standard Chartered analyst also predicted that these Ethereum treasury firms are likely to soon have a higher Market Net Asset Value (mNAV) than Strategy. The mNAVs of digital asset treasury firms, including Strategy, have fallen, with crypto stocks also mirroring the current crypto bear market.
Despite the current market conditions, Strategy and Bitmine have continued to accumulate more Bitcoin and Ethereum, respectively. With the MSTR stock on the decline, Strategy has turned to its preferred security, STRC, to fund a significant part of its recent BTC purchases.
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