I was reading Computer Architecture Organization and Design by David A. Patterson and John L. Hennessy. Specifically, I was reading chapter 5, section 5.3, Basics of Caches. I read the following excerpt:
The index of a cache block, together with the tag contents of that block, uniquely specifies the memory address of the word contained in the cache block. Because the index field is used as an address to reference the cache, and because an $n$-bit field has $2^n$ values, the total number of entries in a direct-mapped cache must be a power of 2. In the MIPS architecture, since words are aligned to multiples of four bytes, the least significant two bits of every address specify a byte within a word. Hence, the least significant two bits are ignored when selecting a word in the block.
It was the bolded section that confused me. How can 2 bits in a 32-bit/4 byte address(that is one word in MIPS) specify a byte, that being 8 bits?