The latest data from Cointelegraph Markets Pro and TradingView revealed that Bitcoin hit new local highs of $62,323 on Bitstamp, reaching a peak of $63,606. This rally was prompted by the confirmation from Fed Chair Jerome Powell that interest rates would be reduced.

During his speech at the annual Jackson Hole symposium, Powell emphasized the need for policy adjustments, stating, "The time has come for policy to adjust." Though he didn't provide a specific timeline for the rate cuts, Powell expressed a desire for an "appropriate dialling back of policy restraint." The Fed Chair also highlighted the importance of maintaining an adequate policy rate to address any potential risks, including labor market conditions.

The topic of employment has been a key point of discussion recently, particularly after a significant decrease in job openings for the 12 months leading up to March 2024 by 818,000. However, market sentiment improved after Powell's remarks, with investors interpreting them as a positive sign for the economy.

Market commentators in the Bitcoin community responded to the news with optimism. Arthur Hayes, former CEO of BitMEX, confidently stated, "Up only time for crypto." Popular trader CrypNuevo observed the liquidations to the upside, adding that a long wick was forming, indicating favorable market movements in the near term.

While Bitcoin's price reached impressive heights, a new block of ask liquidity being added at $62,450 prevented further immediate growth. However, the key breakout level for bulls to transform into support on daily timeframes remained at $62,000.

Michaël van de Poppe, founder and CEO of trading firm MNTrading, expressed confidence in Bitcoin's breakout potential, especially with the influx of capital into US spot Bitcoin exchange-traded funds (ETFs) over the past week. He noted that the massive inflow seen in the ETFs indicated a likely continuation of the rally if Bitcoin could break through the $62,000 level.

Data from Farside Investors, a UK-based investment firm, revealed net ETF inflows exceeding $250 million in just the first four days of the week. This influx of capital further supports the notion that a breakout for Bitcoin is on the horizon.

It is essential to note that this article does not provide investment advice or recommendations. Every investment and trading decision carries inherent risks, and readers should conduct their own research before making any financial commitments.

In conclusion, Bitcoin experienced a significant spike above $62,000 following the US Federal Reserve's announcement of interest rate cuts. The market reacted positively to Fed Chair Jerome Powell's comments, which emphasized the need for policy adjustments and provided reassurance regarding potential risks. Bitcoin market commentators expressed optimism, and the influx of capital into US spot Bitcoin ETFs further bolstered the expectation of a potential breakout. As the cryptocurrency market continues to evolve, investors should approach their decisions with caution and thorough research.