Bitcoin took a hit this week, sliding to $68,000 after Strategy — the corporate bitcoin holder formerly known as MicroStrategy — sold a chunk of its BTC stash. But while the largest crypto stumbled, Ethereum and other altcoins barely budged, holding above key support levels. That divergence caught the eye of Standard Chartered’s global head of digital assets research, Geoffrey Kendrick, who now predicts Ethereum could start outperforming Bitcoin in the near term.
The Bitcoin Dip
The selloff started when news broke that Strategy had offloaded some of its bitcoin. It wasn't a huge liquidation by the firm’s standards, but it was enough to knock BTC below $70,000 for the first time in weeks. By the end of the session, bitcoin was trading near $68,000, a level that hasn't been tested since early May.
What matters more is what didn't happen. Ethereum, for instance, stayed above $3,800. Solana and other layer-1 tokens also held their ground. That resilience is unusual during a BTC-led drawdown, and it’s exactly the kind of pattern Kendrick is keying in on.
Why Ethereum Could Lead
Kendrick’s argument is straightforward: when the market leader falters but the second-largest coin refuses to follow, capital often rotates. Ethereum's relative strength suggests it may have found a floor that Bitcoin hasn't. If BTC continues to drift lower, ETH could act as a store of value within the crypto space — a role it rarely plays.
The timing isn't great for Bitcoin bulls. Strategy's sale adds supply overhang, and the broader macro backdrop — with central banks still hawkish — isn't helping risk assets. Ethereum, meanwhile, has its own catalysts: the upcoming Pectra upgrade and growing institutional interest in staking.
What to Watch
Kendrick hasn’t set a specific price target, but the implication is clear. If Ethereum can break above $4,000 while Bitcoin struggles to reclaim $70,000, the narrative flips. Traders will be watching the weekly close closely — another BTC drop below $67,000 could accelerate the rotation.
For now, the spotlight shifts to whether Ethereum can capitalize on Bitcoin’s weakness. The next few trading sessions should tell us if Kendrick’s call has legs.
