Not sure how to explain without repeating myself. I'll try anyway:
Let's say I own long term US bonds (actually, I do). Now that interest rates are rising I worry because this makes the price of my bonds go lower. When I bought them they gave a yield of let's say 2%. Right now I can buy bonds that yield 2.7% or thereabouts. This makes the bonds I currently hold less attractive, so their price goes down. After the price reduction my bonds also yield 2.7% to someone that would buy them from me. The interest payout of my bonds hasn't changed as this is contractually guaranteed. The only thing that has changed is the market price of my bonds. Of course I'm not happy about that. So, if I think the rates will continue to go up, the best thing I can do is get out of those bonds and buy something to park my money. Like cash, gold, art or bitcoin. Once I think the rates aren't going to go up much more I will buy back the bonds, at lower prices of course.
If I and other people desperately need cash, gold or bitcoin, the price of those assets goes up. I choose cash, gold, art or bitcoin because they don't pay interest and therefore don't become less attractive when interest rates change. Perhaps that's what I haven't been able to make clear: when interest rates rise people want to park their money. Cash is the best option because it is stable. Gold, art, and bitcoin are speculative investments themselves and you might have an opinion on them that makes you either buy them or stay away from. Gold can sometimes act as a protection against inflation so that could be a reason. For bitcoin I can't think of a reason why it would be impacted by rising rates.Well, one but that's also a positive for bitcoin, not a negative: if the rising interest rates lead to a massive panic in the markets banks may shut down and your money might actually be safer in a decentralized system. But we're nowhere near that scenario
Also note that you don't want to put your money in stocks because those too will get hit by rising rates: companies will have to pay a higher rate to borrow money and this will limit their ability to grow.
but let's also turn it around. You are saying:
1) interest rates go up
3) bitcoin goes down.
What is 2?