Does that then decrease the 129.5K to 119.5K?

Either way...There are two hiccups that even that has to overcome:For one, if I'm a millenial tenant (and I am) who has a small portfolio of Bitcoin (and I do), how likely am I to want to give up my Bitcoins, whose value have gone up over 1000% in the past year, rather than my liquid cash, whose value has actually decreased nominally with inflation?

Hopefully a small decrease in price helps you since you have so much invested but it might save you more in the long run to lower your price more and just get it sold.

Might the home decrease in value between now and 2025?  

The federal reserve employs some 400 PhD economists who collectively cannot tell you with specificity that an increase or decrease by a certain amount of basis points, will result in an exact target inflation rate of some amount or %. 

All sorts of rehabs/conversions can turn a total loser into a cashflowing property. ...another example: I've built ADUs in previously unfinished basements, which turned properties that were $500/mo negative into properties that now cashflow 1000/mo ...the power move was rolling the construction debt into refis on other properties at lower rates, which more than negated the construction debt...in other words, I got paid to build the ADUs (these days, this isn't usually possible--or at least, it's a lot less likely--now that rates are rising...but who knows, rates might decrease again at some point...). ...Although certain rehabs/conversions can force cashflow, there is real skill and art to spotting properties that are good candidates for these types of rehabs/conversions. ...an effective rehab/conversion is often a lot trickier than HGTV would have you believe, and choosing the wrong property to do this can completely blow up the financial model.Another approach is to learn to find properties that have something that turns off other buyers, but which is irrelevant to cashflow, and irrelevant to your business model.

I use price labs and go in and decrease the price by 5 dollars, and then bring back up to original price.

I buy them because I have the expertise to be able to identify ways to clear the defect and the defect decrease the market value to a range where even if I'm wrong the loss is such that it is relatively unimportant.You and any other investor are certainly able to self-insure when buying property, but I suspect if you conduct a poll, you'll find most find the peace of mind that comes with a title policy worth the cost.

Do rental rates usually fall when interest rates increase and home values decrease?

It would make sense to decrease the vacancy but at that point I would make it market rent, you will get more income overall if you just have it at market compared to renting it for less then decreasing vacancy rates.