Gold and silver have experienced significant declines from their January 2025 highs, with gold dropping approximately 28% to below $4,000 per ounce and silver falling over 50% to under $59 per ounce. This downturn is attributed to concerns over tighter monetary policy under new Federal Reserve Chair Kevin Warsh, as markets anticipate two 25 basis point rate hikes by March 2027, potentially raising the federal funds rate to 4.00%-4.25% amid renewed inflation fears. Bitcoin, which remained relatively stable around $100,000 throughout 2025, has also seen a decline as the "debasement trade" narrative shifts. The previous belief that fiscal deficits and rising government debt would erode fiat currency value is being challenged, leading investors to reassess bitcoin's role as a hedge against currency dilution.