When the inflation rate is high, investors may turn to cryptocurrencies like Bitcoin as a hedge against inflation, driving up prices. Rising interest rates, on the other hand, can make traditional investment options more attractive, causing some investors to withdraw from the cryptocurrency market, leading to price declines. However, the relationship is complex as cryptocurrencies also have their own independent market dynamics. For example, in some cases, high - interest rates may not affect the cryptocurrency market if there is strong underlying demand from other factors.