Does location of the viewers matter for the algorithm?

Let's say I have an English video with English title, description and keywords.
Then I have a bot with Italian IPs that will go to the search of YouTube, search for my keywords, click on the video and watch it.

Will this only increase the ranking for people in Italy or will it increase the global ranking so it will also improve the ranking for people in the US for example.

You have to understand that the viewers are the "algorithm". Replace "algorithm" with "audience" in any sentence and take action.

Example:
- The algorithm doesn't like my content. -> The audience doesn't like my content.
- My videos don't get push to the algorithm. -> My videos don't get push to the audience.

I'm not experienced with botting, but I always say that an organic audience is the best longterm. And try to focus on YouTube's recommendation system and focus on "Browse features" and "Suggested" views, rather than search, if you want massive views.

Merely having a viewer from Italy watch your video doesn't guarantee that the algorithm will show your video to more Italian viewers unless the content is relevant to them. Your video needs to align with keywords or themes that indicate Italy as your target audience.