Core Insights - Bitcoin reached a new high of over $126,000 before experiencing a significant drop due to President Trump's threat of new tariffs on China, resulting in over $19 billion in liquidated crypto futures positions [1] - Following the crash, Bitcoin's price briefly fell below $110,000 but has since recovered to around $113,494, while gold reached a record price of $4,099 per ounce [2] - Experts believe that the debasement trade, which includes Bitcoin as a hedge against currency debasement, still has potential for growth over the next decade [3] Market Reactions - The aggressive interest rate hikes by the U.S. central bank have been reversed, and unless rates remain high, the debasement trade is expected to continue [4] - If real interest rates rise significantly and persist, or if there is a notable outflow of institutional funds, Bitcoin's role as a debasement hedge may be reassessed [5] Performance of Other Cryptocurrencies - While Bitcoin is currently 10% below its all-time high, other cryptocurrencies like Solana and XRP have experienced even greater declines, remaining over 30% lower than their peaks earlier this year [5]