While the value of Bitcoin has fallen 41.72% from its ATH of $69,000, a closer look into different on-chain and derivatives data suggests that a decline in inflows and the shift from investment firms are the key factors influencing BTC price behavior.

Since 2017, when spot trading has overtaken the Bitcoin market, and derivatives markets accounted for only a small portion of trade activity, a lot has changed in the crypto market.

Bitcoin derivatives "today constitute the primary venue for price discovery," as per a new analysis from on-chain market intelligence startup Glassnode, with "future transaction volume currently reaching multiples of spot market volume."

Because the amount of futures trade has been dropping since January 2021, this has significant implications for BTC's present price movement. From a high of $80 billion per day in the first half of 2021 to its present level of $30.7 billion per day, the statistic has dropped by more than 59%.

Perpetual futures have surpassed regular calendar futures as the favored trading instrument over the same period because they more closely follow the spot index price. The expenses of taking delivery of BTC are far cheaper than conventional assets.

"The current open interest in perpetual swaps is comparable to 1.3% of the Bitcoin market size," according to Glassnode. "This is reaching unprecedented levels."

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Despite this, a dropping leverage ratio has resulted from the entire movement of capital and leverage out of calendar expiration futures, which "suggests that a fair amount of money is really exiting the Bitcoin market."

This capital flight is likely because futures market rates are now just around 3.0%, which is only 0.1% higher than the 2.9% yield on the 10-year US Treasury Bond and significantly below the US Consumer Price Index (CPI) inflation print of 8.5%.

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The NFT industry is expected to grow by $800 billion in the next two years - report.

Nonfungible tokens (NFTs) have been a part of the cryptocurrency industry since 2014, but their popularity and usage have exploded in the previous two years. The cumulative trading volume of NFTs peaked in August 2021 at over $5 billion, kicking off what was dubbed "NFT Summer" for a brief period.

The NFT sector is likely to transfer more than $800 billion in the next two years, as per a CoinGecko analysis. According to the research, roughly 72% of the 871 participants possess at least one NFT, with more than half having five or more.

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According to the data, 43.6% of NFT investors polled were between 18 and 30, while 45.2% were between the ages of 30 and 50.

While most of the NFT market appears to be centered in popular collections such as the Bored Ape Yacht Club (BAYC) and CryptoPunks, 35.8% of responders were engaged in NFTs tied to play-to-earn and metaverse games, and 25% preferred art NFTs.

"The metaverse industry is expected to grow to over $800 billion in the next two years," according to the report, "and gaming looks to be the most likely entrance point into the NFTs industry."

"The top rationale for our respondents' NFT purchases was 'flip and earn,' albeit 2/3 of respondents reported that NFTs only constituted up a small part of their overall portfolio."

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Even though TeleGeography reported more than 7.1 billion active mobile devices globally, 60% of investors still choose to trade and generate NFTs on their personal computers. With only 21% of replies, mobile falls behind. The research stated, "This can be ascribed to the simplicity of utilizing a PC to browse time-sensitive NFT mints/trades."