The CIO of Arca explains how crypto tokens (but not Bitcoin) will outperform stocks in 2023
According to Arca Chief Investment Officer Jeff Dorman, digital assets will largely separate from traditional equity markets in 2023.
In a recent interview, Dorman talked about his prediction for 2023 and suggested that while some cryptocurrencies will perform well, equities will suffer as the world economy enters a recession this year. Cryptocurrencies, he said, are valued by macroeconomic factors as well as their utility inside their particular ecosystems, which would not change during a recession.
“You’re going to see a lot of stocks get punished under the weight of restructurings and under the weight of lower revenues and lower cash flows,” said Dorman. “And you’re actually going to see a lot of tokens do really well.”
Bitcoin (BTC), which Dorman predicts will stay highly tied to the stock markets given its high sensitivity to macro issues like global liquidity and interest rates, may not, however, be a part of crypto’s decoupling process from stocks.
Dorman stated that:
“Bitcoin has just become a 24/7 VIX. It’s just a trading vehicle now for large funds who want to get in and out of risk on weekends and overnight trading hours,”
Watch the complete interview on YouTube to learn more about Dorman’s crypto forecasts for 2023.
