The upcoming monetary policy decision by the European Central Bank (ECB) to potentially cut interest rates could have significant implications for Bitcoin inflows this week. The rate cut, expected to be around 0.25% to 4.25% on June 6, might trigger increased investor interest in risk assets like Bitcoin, as suggested by Jag Kooner, the head of derivatives at Bitfinex. Kooner highlighted that lower interest rates tend to weaken the euro and enhance liquidity, which in turn can stimulate demand for riskier investments, including Bitcoin.

This move by the ECB aligns with the backdrop of decreasing inflation in Europe, with the Consumer Price Index (CPI) for May likely to record 2.6%, potentially marking the eighth consecutive month of inflation falling below the 3% threshold.

According to experts like James Wo, founder and CEO of DFG, the anticipated rate cut could not only lift traditional equity markets but also provide a positive trajectory for Bitcoin's value. Wo mentioned that the impact of rate cuts on traditional stocks has historically been favorable, and the recent rise in European stock indexes along with Bitcoin price suggests a positive correlation. The STOXX 600 and DAX 40 indexes in Europe saw gains of over 3.3% and 3.8%, respectively, in the past 30 days, coinciding with a 17.4% increase in BTC price.

While there is a bullish outlook projecting Bitcoin to follow equities upwards, there's also an alternative perspective that Bitcoin might diverge from equities and function as a form of 'digital gold.' Despite previous mixed correlations with equities, there is a belief that Bitcoin could benefit from economic stimuli similar to traditional assets, primarily due to increased liquidity in the market.

Contrastingly, Bitcoin has demonstrated a robust performance unrelated to the sluggish equities market in the US. While the S&P 500 index has seen an 11.5% increase year-to-date, Bitcoin has outperformed with a significant 57.6% rise during the same period. Observers suggest that Bitcoin's resilience could either indicate its strength compared to equities or point to potential lagging trends within the crypto space.