How crypto tokens (not Bitcoin) will outperform stocks in 2023, Arca’s CIO explains

Digital assets will be largely decoupled from traditional equity markets by 2023, says Arca's chief investment officer Jeff Dorman.

Discussing his outlook for 2023 in a recent interview with Cointelegraph, Dorman argues that as the global economy enters a recession this year, stocks will be negatively affected, while some crypto tokens will perform well: the value of the latter. , he explained, is determined not only by macroeconomic factors but also by their usefulness within the respective ecosystems, which would remain unchanged in a recession.

“We are going to see a lot of stocks punished under the weight of the restructurings and under the weight of lower revenues and lower cash flows. And you will actually see a lot of tokens do very well,” Dorman explained.

However, the process of decoupling cryptocurrencies from equities may not involve Bitcoin, which according to Dorman will continue to be highly correlated with equity markets, given its high sensitivity to macro factors such as global liquidity and interest rates. interest.

“Bitcoin just became a 24-7 VIX, now it's just a trading vehicle for big funds who want to get in and out of risk on weekends and overnight trading hours,” Dorman noted.

For more information on Dorman's crypto predictions for 2023, check out the full interview in our Youtube channeland don't forget to subscribe!