Fed officials sometimes need to tighten the money supply to keep inflation in check—think of it like removing the punchbowl from the party. When liquidity flows too freely, prices spiral out of control. That's the core dilemma: sustain growth or fight inflation first? For crypto traders and investors, this matters big time. Every rate hike or policy shift from the Federal Reserve ripples through digital asset markets. When the Fed signals hawkish moves, Bitcoin and altcoins often face selling pressure. Understanding these macro moves isn't optional—it's essential context for managing your portfolio through different economic cycles.