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Digital assets will largely be cut off from traditional equity markets by 2023, according to Jeff Dorman, Arca’s chief investment officer.

Discussing his outlook for 2023 in a recent interview with Cointelegraph, Dorman argued that as the global economy enters recession this year, stocks will be negatively impacted while some cryptocurrencies will perform well. The value of the latter, he explained, is determined not only by macroeconomic factors, but also by their utility in their respective ecosystems, which will remain unchanged in recessionary conditions.

“You’re going to see a lot of stocks get punished under the weight of restructuring and lower earnings and cash flow,” Dorman said. “And you’ll actually see a lot of tokens do really well. “.

However, the process of decoupling crypto from stocks may not include Bitcoin (BTC), which Dorman believes will be highly correlated with stock markets given its high sensitivity to macro factors such as global liquidity and interest rates.

“Bitcoin just became a 24/7 VIX. It’s just a trading vehicle for large funds who want to get in and out of risk during weekend and overnight trading hours,” Dorman said.

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.