In the UK, the fall in the pound, which picked up recently, has had a major impact on inflation, which hit 3% this month.
How can inflation and rise in interest rate affect the price of Bitcoin?
The interest rate and inflation of a single country doesn't really effect bitcoin price in any way. They are indicators of a real world economy and not representing and no crypto is directly linked with these economical indicators. Consider bitcoin as a separate economy which runs parallel to the main stream economy, but doesn't really show any effect on the real-world economical factors. Instead bitcoins price is directly related to its acceptability. The more country will accept bitcoin the more investment will inflow in to it and the price will rise accordingly.