Cryptocurrency prices versus the dollar in Hong Kong on Dec. 21. After reaching record highs late in 2021, cryptocurrencies had a harsh 2022. © Getty Images

'Crypto winter' to 'ice age'? What 2023 holds for digital assets

After a year of turbulence, exchanges and investors hope for an eventual rebound

PAK YIU, DYLAN LOH and FRANCESCA REGALADO, Nikkei staff writers

December 30, 2022 06:00 JST

HONG KONG/SINGAPORE/BANGKOK -- Cryptocurrency investors may be used to volatility, but 2022 tested the faith of even the staunchest believers as exchanges and funds across the industry went into meltdown. Valuations plunged, companies folded and thousands were laid off.

Can the industry emerge from the downturn stronger? After a brutal year, even those who believe it can predict a long and rocky road ahead.