
<p></p>



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1024" height="512" src="https://tokentopnews.com/wp-content/uploads/2022/06/bitcoin-g7ef6b2d19_1920-1200x600-1-1024x512.jpg" alt="Bitcoin" class="wp-image-1169" srcset="https://www.tokentopnews.com/wp-content/uploads/2022/06/bitcoin-g7ef6b2d19_1920-1200x600-1-1024x512.jpg 1024w, https://www.tokentopnews.com/wp-content/uploads/2022/06/bitcoin-g7ef6b2d19_1920-1200x600-1-300x150.jpg 300w, https://www.tokentopnews.com/wp-content/uploads/2022/06/bitcoin-g7ef6b2d19_1920-1200x600-1-768x384.jpg 768w, https://www.tokentopnews.com/wp-content/uploads/2022/06/bitcoin-g7ef6b2d19_1920-1200x600-1.jpg 1200w" sizes="auto, (max-width: 1024px) 100vw, 1024px" / onerror="this.onerror=null;this.src='/images/default-thumb.svg'"></figure>



<p><strong>With the global economy showing all signs of a recession, the already weak bitcoin finds itself in a more uncertain macroeconomic environment.</strong></p>



<p><strong>The Terra crash was just one of the warning signs.</strong></p>



<p>ARK Investment is now publishing The Bitcoin Monthly, which details the performance of the leading digital asset.&nbsp;The May issue is now out.&nbsp;Ark Invest analyst Yassine Elmandjra explains the&nbsp;<a href="https://twitter.com/yassineARK?ref_src=twsrc%5Egoogle%7Ctwcamp%5Eserp%7Ctwgr%5Eauthor" rel="noreferrer noopener" target="_blank">key</a>&nbsp;takeaways from the first edition.</p>



<h3 class="wp-block-heading">Bitcoin closed the month down 17.2%</h3>



<p>It is the first time Bitcoin has recorded a ninth consecutive weekly decline, indicating an oversold condition.&nbsp;According to the ARK report, the Terra Network crash is one of the main reasons for this drop.The Fed&#8217;s announcement of interest rate hikes is another contributing factor.&nbsp;Bitcoin is still 67% off its peak reached in November last year.&nbsp;However, the report notes that 76% was the average drop from high to low in previous bear markets.</p>



<h3 class="wp-block-heading">BTC and S&amp;P 500 correlation hits new high</h3>



<p>The report also notes that BTC&#8217;s correlation with the S&amp;P 500 was 80% over the past month.&nbsp;This value is the highest correlation value Bitcoin has ever had with the S&amp;P 500.&nbsp;This suggests that investors view Bitcoin as a risky asset.</p>


<div class="wp-block-image">
<figure class="aligncenter size-full is-resized"><img loading="lazy" decoding="async" src="https://tokentopnews.com/wp-content/uploads/2022/06/2-btc-s-p-correlation-300x201-1.jpg" alt="Bitcoin Monthly" class="wp-image-1170" width="418" height="280"/ onerror="this.onerror=null;this.src='/images/default-thumb.svg'"></figure></div>


<p>However, the report also states that the strong correlation indicates massive market inefficiency.&nbsp;According to ARK investment analysts, Bitcoin&#8217;s fundamentals show that the correlation with the S&amp;P 500 shouldn&#8217;t be that high.</p>



<h3 class="wp-block-heading">Bitcoin has yet to break a major trend line</h3>



<p>Despite the massive sell-off, Bitcoin is still trading above all major trend lines.&nbsp;It hasn&#8217;t fallen below its on-chain cost base of $24,000 or its 200-WMA of $22,000, unlike previous declines where the price has slipped below its on-chain cost base as well.However, it&#8217;s rare for him to close below his 200-WMA.&nbsp;However, the report states that the intersection of the lines between the $22,000 and $24,0000 area indicates strong support for Bitcoin.&nbsp;Elmandjra added that even if this bear market is like the previous ones, the downside risks are still on BTC&#8217;s 200-week WMA.</p>



<h3 class="wp-block-heading">Terra crash wipes out 3% of total crypto market cap</h3>



<p>ARK Investment Reports notes that Terra is the&nbsp;</p>



<p>largest&nbsp;layer-one blockchain failure in crypto history.&nbsp;The crash caused a $60 billion loss in the <a href="https://tokentopnews.com/coins-marketcap/" target="_blank" rel="noreferrer noopener">market cap</a> of the UST stablecoin and <a href="https://tokentopnews.com/tag/terra-luna/" target="_blank" rel="noreferrer noopener">LUNA</a> token.The Mt. Gox hack of 2014 caused the crypto market cap to drop by 5.7% at the time.&nbsp;However, the recent Terra Network crash caused the crypto market cap to drop by 2.7%.</p>



<h3 class="wp-block-heading">Stock market inflows peak</h3>



<p>After the Terra crash, the daily Bitcoin inflow on exchanges reached 52,000 <a href="https://tokentopnews.com/tag/bitcoin-btc/" target="_blank" rel="noreferrer noopener">BTC</a>.&nbsp;This is the highest value since November 2017. It is also the highest value ever measured in USD.&nbsp;The report notes that large net Bitcoin inflows typically occur during periods of high volatility.</p>


<div class="wp-block-image">
<figure class="aligncenter size-full is-resized"><img loading="lazy" decoding="async" src="https://tokentopnews.com/wp-content/uploads/2022/06/5-btc-inflows-into-exchanges-300x201-1.jpg" alt="Bitcoin Monthly" class="wp-image-1171" width="459" height="308"/ onerror="this.onerror=null;this.src='/images/default-thumb.svg'"></figure></div>


<p>This volatility can occur in both bull and bear markets.&nbsp;Another reason for the huge daily Bitcoin inflow to the exchanges was the sale of almost 80,000 Bitcoin by the<a href="https://tokentopnews.com/tag/terra-luna/" target="_blank" rel="noreferrer noopener"> LUNA </a>Foundation Guard (LFG).&nbsp;The sale of LFG was part of a move to prevent its UST stablecoin from collapsing.</p>


First edition of ARK Investments “The Bitcoin Monthly” is out

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