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Back in 2020, Fed Chair Jerome Powell made a pivotal shift in interest-rate guidance that would shape financial markets for years to come. The move, initially intended to support the economy during turbulent times, triggered a wave of liquidity that flowed into risk assets—including crypto markets.
But here's the thing: Powell later acknowledged this policy decision came with consequences he hadn't fully anticipated. The extended low-rate environment fueled asset inflation across multiple sectors. For crypto traders and investors, this period marked a turning point. The abundance of cheap money created conditions that pumped altcoin valuations and sparked retail FOMO in waves.
Looking back now, that guidance change became a textbook example of how macroeconomic policy tilts can ripple through digital asset markets. Whether it was Powell's regret or not, the crypto community certainly felt the aftershocks.