According to Jeff Dorman, chief investment officer of Arca, in 2023 some cryptocurrencies will outperform stocks as they become less sensitive to macroeconomic factors
Jeff Dorman, chief investment officer at Arca, believes that in 2023, digital assets will diverge significantly from the traditional equity market.
Discussing his outlook for 2023 in a recent interview with Cointelegraph, Dorman argued that as the global economy enters a recession this year, there will be a negative impact on equities while some cryptocurrencies will perform well. He explained that the value of the latter is determined not only by macroeconomic factors but also by their usefulness in their respective ecosystems, which remains unchanged during a recession.
Dorman said, “You find that a lot of stocks get punished under the weight of restructuring and low revenue and low cash flow. And in fact you find that many tokens are doing really well.”
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But Bitcoin may not be involved in the process of decoupling crypto from equities
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, which believes global liquidity, will be highly correlated with stock markets given its high sensitivity to macro factors such as interest rates.
“Bitcoin just became a 24/7 VIX. Now it’s just a trading vehicle for larger funds looking to exit risk during weekend and night trading hours,” Dorman explained.
To learn more about Dorman’s crypto predictions for 2023, watch the full interview on Cointelegraph’s YouTube channel, and don’t forget to subscribe!