The highly volatile cryptocurrency market was stoked by forecasts of aggressive interest rate increases from the US Federal Reserve, which led to a rise in bitcoin prices above $22,000 on Tuesday.

The most widely used cryptocurrency increased by as much as 6.8% to reach a high of $22,954.36 per coin, which is its highest price since June 14, when lender Celsius Network suspended withdrawals amid a collapse in the value of digital assets.

However, as concerns over Chinese lockdowns overcame the lessening of worry about interest rates, Asia-Pacific share markets largely followed the US lower.

The Hang Seng index in Hong Kong dropped as much as 1.2%, and the CSI 300 in China dropped as much as 0.7%. The Topix index in Japan rose 0.8%.

On Monday, the Japanese investment bank Nomura reported that as many asThe highly volatile cryptocurrency market was stoked by forecasts of aggressive interest rate increases from the US Federal Reserve, which led to a rise in bitcoin prices above $22,000 on Tuesday.

The most widely used cryptocurrency, Bitcoin, increased by as much as 6.8% to reach a high of $22,954.36 per coin, which is its highest price since June 14, when lender Celsius Network suspended withdrawals amid a collapse in the value of digital assets.

However, as concerns over Chinese lockdowns overcame the lessening of worry about interest rates, Asia-Pacific share markets largely followed the US lower.

The Hang Seng index in Hong Kong dropped as much as 1.2%, and the CSI 300 in China dropped as much as 0.7%. The Topix index in Japan rose 0.8%.

On Monday, the Japanese investment bank Nomura reported that as many as 41 cities in China are under lockdown again. Thus, raising the fear of investment and market volatility.

The limitations now apply to 264 million people in areas that generate approximately 18.7% of the nation’s economic activity, a down from a week ago when they only applied to 31 cities.

Emerging market realities for Bitcoin

US markets lost some of their early gains on Monday after news of Apple’s tech company’s spending slowing sparked new worries about a possible recession.

The S&P 500, which earlier in the day had increased by as much as 1%, instead fell by 0.8%. Additionally, the Nasdaq Composite fell 0.8%.

This shift has taken place amidst European Parliament’s passing of Digital Services Act to regulate the volatile crypto market and challenge the hegemony of famous cryptocurrencies like Bitcoin, Etherium.

Fears of a shutdown in China also contributed to lower oil prices on Tuesday, with US benchmark West Texas Intermediate falling 0.2% and international benchmark Brent crude shedding 0.2% to finish at $106.03 a barrel.