The price of BTC is based on the bid-ask spread on BTC exchanges, which will move up and down based on the ratio of buyers to sellers. More buyers, the price go

The price of BTC is based on the bid-ask spread on BTC exchanges, which will move up and down based on the ratio of buyers to sellers. More buyers, the price goes up. More sellers, the price goes down. This is an oversimplification but good enough for these purposes. So in order for the price to go up when inflation goes up, we would need more people to want to buy BTC in response to inflation. This does not appear to be the case, for a number of reasons. One reason is, when prices rise people spend more (even if they don't adjust what they buy, which they often do) so they will have less money available to buy BTC, even if they wanted to. Another reason is, the economic and financial systems (including crypto) are interconnected, so disruptions in one can cause actions in another. For example, if stocks go down 70% maybe I'll sell some BTC to buy some cheap stocks. Or maybe I'll get spooked and just stop buying anything. There's more but that's my read on it.