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Digital assets will largely decouple from traditional stock markets in 2023, says Jeff Dorman, chief investment officer at Arca.

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 these, has he explained, is determined not only by macroeconomic factors, but also by their usefulness within the respective ecosystems, which would remain unchanged in the event of a recession.

“You’re going to see a lot of stocks being penalized under the weight of restructuring and under the weight of lower revenues and lower cash flow. And you’re actually going to see a lot of tokens doing really well,” Dorman explained.

The process of decoupling Crypto from stocks, however, may not involve Bitcoin, which Dorman believes will remain highly correlated to stock markets, given its high sensitivity to macro factors such as global liquidity and interest rates.

“Bitcoin has just become a 24/7 VIX, it’s just a trading vehicle for large funds that want to get in and out of risk on weekends and overnight trading hours”, Dorman pointed out.

For more on Dorman’s crypto predictions for 2023, check out the complete maintenance on our Youtube channeland don’t forget to subscribe!