The recent Bitcoin (BTC) price drop has raised concerns among investors about the potential impact of government-led Bitcoin sales. However, according to CryptoQuant CEO Ki Young Ju, the U.S. government's sale of 4,000 BTC is unlikely to significantly affect the market.

Ju emphasized that Coinbase Prime, the exchange handling the government's Bitcoin sales, has the capacity to manage substantial liquidity during periods of high spot ETF inflows, ranging from 20,000 to 49,000 BTC. Even on low Bitcoin ETF inflows, the exchange can handle liquidity between 6,000 to 15,000 BTC.

The CEO stated that he is "tired of 'government selling' FUDs" and that the current selling by the U.S. and German governments should not be a major cause of concern for market participants. Earlier this year, the U.S. government had transferred 30,175 BTC, valued at $2 billion, to the same Coinbase wallet.

While the governments have been offloading their Bitcoin holdings, the actual selling pressure on the market is coming from miner capitulation. Miners, who have been struggling to maintain their operations after the recent Bitcoin halving event, have been net sellers, putting additional downward pressure on BTC prices.

As of the time of writing, Bitcoin is trading 1.5% down at $60,630, with its market cap dropping by over $100 billion in the past week. Analysts attribute this price correction to the miner capitulation, rather than the government-led Bitcoin sales.

Ju's comments suggest that the Coinbase Prime exchange has the necessary liquidity to handle the government's Bitcoin sales without significantly impacting the broader market. The focus should be on the miner capitulation, which appears to be the primary driver of the current BTC price drop.

Overall, the CryptoQuant CEO's assessment provides reassurance to investors that the government's Bitcoin sales are not the primary cause of the recent market turbulence. The market's attention should be on the challenges faced by miners and their impact on the Bitcoin ecosystem.