The cryptocurrency market has kicked off 2024 on a high note, rallying over the past two days and extending its bullish momentum from late 2023. Several key factors are contributing to the positive price action.

First, anticipation is building around the potential approval of a spot Bitcoin exchange-traded fund (ETF) in the United States this week. The altcoin market, led by Ethereum and Solana, is tracking Bitcoin's gains as investors bet on an ETF green light catalyzing further upside.

Second, a short squeeze has gripped the market after $200 million worth of short positions were liquidated amid the sharp price rises. Short sellers have been forced to flip long, amplifying the bullish momentum. Crypto market open interest recently hit a 2-year high.

Finally, the bigger picture 4-year bull cycle tied to Bitcoin's halving events has investors anticipating significant gains over 2024-2025. With the next halving arriving in April, market participants are gearing up for the start of a new prolonged upside move.

After weathering the 2022/2023 bear market and overcoming major crises like the FTX collapse, the crypto market looks primed to start 2024 off strong. Continued adoption and inflows into crypto investment products paint an optimistic picture for the year ahead.