If USD and EUR decrease due to inflation, the price of Bitcoin will increase. Therefore, fiat inflation will increase the price of Bitcoin in the long run. That affects the price of bitcoin
Yes it is obvious that the price of Bitcoin in fiat currencies is affected by their relative purchase power. I think the OP question is a bit too vague but as the dollar is the world reserve currency it has a large effect on the global economy which has also an effect on the supply and demand of Bitcoin.
The connection between is thus direct and indirect but they both have their own complex dynamics, so as much as it's interesting it's a pretty difficult topic
