Although the Bitcoin price is currently doing well above $71,000, the Spot Bitcoin ETFs performed dramatically during the opening of the week.

This was not only due to the outflows at Grayscale (-$303 million), but also to the disappointing inflows at BlackRock (+$21 million) and Fidelity (+$6 million).

Of course, that doesn’t help Bitcoin record a new all-time high this week.

Why are ETF flows so disappointing?

Investors may be waiting for Wednesday. Then we will receive a whole bunch of important inflation data from America.

In January and February, inflation was much higher than expected in the United States. This means that the US central bank may wait a while before lowering interest rates.

At the US central bank they indicated that they wanted to see confirmation in the March inflation data that January and February were an exception.

Thus, investors should hope for a low inflation score for March. In theory, that could get us closer to the first interest rate cuts more quickly.

Are interest rate cuts that important?

For the time being, it seems as if interest rate cuts are not that important. Even after the most aggressive campaign of interest rate increases, the Bitcoin price is doing fantastic.

In general, interest rate cuts are bullish for the Bitcoin price because they reduce the price of capital. A lower price of capital means that commercial banks lend money more easily and that more capital comes into circulation.

Some of that capital will find its way into Bitcoin, making interest rate cuts bullish for the digital currency, but not essential.

It now appears that there is sufficient capital to take the Bitcoin price to new all-time highs without interest rate cuts.

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