Yes! The fiat money supply can affect the price of Bitcoin. When there is an increase in the supply of fiat money, it can lead to inflation and a decrease in the purchasing power of that currency.
Compare that to Bitcoin which has a fixed supply cap of 21 million coins which means that its supply is limited. And that limit will get hit in 2140. So between now and then, there is a steady increase of Bitcoins available but that rate is not controlled by any one person or entity.
So when there is an increase in the supply of real money, it can lead to a decrease in its value relative to other assets like Bitcoin. On the other hand, when the value of fiat money drops, some investors may turn to Bitcoin as a way to protect their wealth and potentially earn a return on their investment.
Also, when the supply of fiat money increases, it can lead to an increase in demand for assets such as Bitcoin, which have a fixed supply. This increase in demand can drive up the price of Bitcoin.
But its not that simple. Market sentiment, regulatory developments, and technlogical advancements, can also influence the price of Bitcoin. And the exact impact of the fiat money supply on Bitcoin price may vary depending on the specific circumstances and market conditions at the time.