The cryptocurrency market has been abuzz with news of governments, particularly the United States and Germany, offloading significant amounts of Bitcoin (BTC) through popular exchanges like Coinbase and Kraken. This development has sparked concerns among investors, leading to a dip in the Bitcoin price. However, according to CryptoQuant's CEO, Ki Young Ju, these government-led sales are not the primary driver behind the current BTC price correction.

Ju has stated that the U.S. government's sale of 4,000 BTC is unlikely to have a significant impact on the market. He emphasized that Coinbase Prime, the exchange handling these transactions, has the capacity to manage substantial liquidity, handling between 20,000 and 49,000 BTC during periods of high spot ETF inflows. Even on low Bitcoin ETF inflows, the exchange can handle liquidity at 6,000 to 15,000 BTC.

Ju's message is clear: the "government selling" narrative is merely a case of unfounded fear, and market participants should not be overly concerned about these transactions. Earlier this year, in April, the U.S. government had already transferred 30,175 BTC, valued at $2 billion, to the same Coinbase wallet, without causing any major disruption.

Similarly, the German government has also been actively moving over 2,200 BTCs over the past seven days. However, despite these sell-offs, Germany's Bitcoin holdings have substantially appreciated, now valued at $2.76 billion, with $1.1 billion in unrealized profit.

The actual driving force behind the current BTC price correction appears to be miner capitulation. The recent Bitcoin halving event has put significant pressure on miners, forcing them to struggle to maintain their operations. As a result, these miners have been the net sellers in the market, contributing to the additional selling pressure on Bitcoin.

As of the time of writing, Bitcoin is trading 1.5% down at $60,630, with its market cap falling below $1.2 trillion over the last week. While the market may be experiencing some volatility, it is crucial for investors to look beyond the surface-level narratives and focus on the underlying fundamentals that are shaping the cryptocurrency landscape.