Flexible Average Inflation Targeting (FAIT) was the Federal Reserve's attempt to modernize its monetary policy by aiming for an average of 2% inflation to compensate for past shortfalls. Adopted in 2020, the framework was designed to combat a decade of disinflationary pressures. However, the post-pandemic surge in inflation rendered FAIT's core premise irrelevant, leading to its official discontinuation in August 2025. This pivot to a more aggressive, inflation-fighting stance has significant implications for the cryptocurrency market. The end of a "risk-on" environment and the return to monetary tightening have made speculative assets like Bitcoin and altcoins more vulnerable to macroeconomic forces, highlighting the need for a clear and credible central bank framework to maintain financial stability and manage risk in a rapidly changing economic environment.