Bitcoin (BTC) experienced a sudden crash recently due to the dissemination of erroneous information suggesting that the United States Securities and Exchange Commission (SEC) had granted approval for the iShares Bitcoin spot ETF application from BlackRock. This misinformation led to a substantial 8% drop in Bitcoin's value. However, the cryptocurrency quickly rebounded from this setback, a development that garnered positive reactions from prominent analyst Michael van de Poppe.

Remarkably, the swift recovery from this major false news event is drawing attention. Presently, the leading digital currency is trading at $28,417.91, marking a 2.23% increase over the past 24 hours, representing one of its most notable surges in the past week. This resurgence has also ignited a renewed sense of optimism in the cryptocurrency market, contributing to the ongoing recovery of alternative coins and fueling bullish predictions for Bitcoin.

Despite the current optimism, van de Poppe anticipates that the events of the past 24 hours will create a "buy the dip" opportunity. He projects that Bitcoin may correct to a range between $27,300 and $27,700, at which point he anticipates a surge in buying interest.

It is noteworthy that Bitcoin's current surge suggests that, at least in the short term, there is a substantial appetite among buyers to capitalize on favorable news developments.

Bitcoin Spot ETF Enthusiasm

The rally triggered by the false news has generated considerable enthusiasm, with several market experts speculating on the implications of this short-lived rally should the SEC ultimately approve a Bitcoin spot ETF.

Numerous prominent investment and financial institutions are actively vying for approval of their Bitcoin spot ETF applications. In addition to BlackRock, contenders like Invesco, WisdomTree, and Bitwise are also competing in this space. Analysts at Bernstein have expressed confidence in the likelihood of securing approval for a BTC ETF.