Bitcoin (BTC) has experienced a significant decline of over 6% in the past week, deviating from its typical correlation with the Nasdaq Composite Index. While the Federal Reserve's decision to signal a single interest-rate cut for the year has been blamed for bitcoin's slide, technology stocks have continued to gain traction. This suggests that crypto-specific factors may be contributing to BTC's inability to keep pace with the Nasdaq.

Markus Thielen, founder of 10x Research, attributes the decline to a large seller perceiving prices as overvalued, leading to a sell-off. The November 2021 all-time high of nearly $70,000 appears to be a level where long-term holders are willing to cash out. Recent activity includes an inactive wallet since 2018 moving 8,000 BTC worth over $500 million to crypto exchange Binance, potentially signaling an impending sale.

Data from CryptoQuant indicates a decline in the number of BTC inactive for at least 12 months and two years, suggesting holders have taken profits as the bitcoin price holds near record highs. Ilan Solot, co-head of digital assets at Marex Solutions, notes that addresses with supply inactive for 1 and 2 years have been selling since the price hit record highs, offsetting accumulation by longer-term holders.

According to Thielen, 1.8 million BTC have not moved for over a decade, potentially including the 1.1 million BTC mined by Satoshi. The upcoming distribution of 142,000 bitcoin (BTC) and 143,000 bitcoin cash (BCH) from defunct exchange Mt. Gox to creditors may also pose a substantial overhang on digital asset prices.

Increased selling by miners, responsible for making coins, may also be contributing to BTC's price weakness. Listed miner Marathon Digital (MARA) has sold 1,400 bitcoin worth $98 million this month, and miners sold at least 1,200 BTC on June 10 via over-the-counter desks, the highest single-day volume in over two months. The declining hashrate, or computing power dedicated to the Bitcoin blockchain, is a sign of miner capitulation.