What is causing the Bitcoin price to remain stagnant?

Bitcoin (BTC) price remains trapped within a range, indicating uncertainty among market participants following the approval of spot Bitcoin ETFs last week. Since January 16, BTC’s price has been stuck between $41,550 and $43,000, despite a brief surge to over $49,000 earlier in the month. The lack of movement can be attributed to several factors, including the muted response to the ETF approval, the decline in Bitcoin’s dominance due to gains by Ethereum (ETH), and mixed fundamental outlook. While there is increasing capital inflow into BTC investment funds, concerns about miners selling their coins faster and the potential increase in mining costs after the halving in April 2024 offset the positive sentiment. Additionally, there is a noticeable trend of increasing buying in South Korea and selling in the US, as indicated by the Kimchi Premium Index and the Coinbase Premium Index. From a technical standpoint, Bitcoin’s rangebound price movements align with a neutral RSI, suggesting a balance between buyers and sellers. Investors may wait for more information before making significant moves, leading to lower volatility in prices.