Increasing velocity in fluid dynamics leads to a decrease in pressure due to the principles outlined in Bernoulli's equation, which states that the sum of static pressure, gravitational potential energy per unit volume, and dynamic pressure remains constant along a streamline. While dynamic pressure increases with velocity, the overall pressure decreases as the fluid accelerates, illustrating the conservation of energy in fluid flow. The discussion also clarifies that when manipulating Bernoulli's equation, the term should refer to change in gauge pressure, as it aligns with the changes in other variables like height and velocity. Understanding these relationships is crucial for grasping fluid dynamics concepts. The interplay between velocity and pressure is fundamental in fluid mechanics.