When central banks keep rates artificially low, savers face a brutal reality—their cash holdings lose purchasing power faster than ever. This squeeze on traditional savings has major implications for how investors think about portfolio allocation.

Recently, monetary policy makers have been flagging exactly this concern. The math is simple: if your savings account yields 1% but inflation runs 3-4%, you're losing ground every single month. That gap forces people to look elsewhere—whether that's equities, commodities, or alternative assets.

For crypto investors, this dynamic matters. When real rates turn negative (nominal rate minus inflation), the incentive to hold fiat weakens dramatically. Bitcoin and other assets become more attractive simply because they offer a hedge against currency debasement. We've seen this play out before during aggressive monetary stimulus cycles.

The policy shift highlights a fundamental tension: central banks want growth, but their tools crush savers in the process. This structural pressure isn't going away anytime soon, and it's reshaping how both retail and institutional players think about asset diversification and risk management across markets.