yup, and eventually that money goes somewhere else and some of it comes to bitcoin

the thing that makes this confusing these days is that the regime uncertainty makes people hold off on spending their fiat balances as fast as they would in more stable times

so, they raise the interest rate, and it takes time for people to figure out what they can send that spare cash to that isn't gonna go down in value faster than the money itself

and once some people start pushing it into bitcoin, others see this rise and go "ooh, here's a bull market" and so it goes

there is a complex relation between the increase in money supply and the regulatory environment and the levels of production and consumption... and buying bitcoin is a production side thing, so even if consumer prices are going up, bitcoin is a producer good, so it isn't immediately affected