Bitcoin (BTC) experienced a flash crash yesterday after the false news that the iShares Bitcoin spot ETF application from BlackRock had been approved by the United States Securities and Exchange Commission (SEC). Bitcoin plunged as much as 8% on the news; however, it has bullishly pared off these losses, a move that top analyst Michael van de Poppe said has him "positively surprised."
The rate of recovery for such major false news is also surprising. The premier digital currency is now changing hands at a price of $28,417.91, up by 2.23% over the past 24 hours in what appears to be one of its most emphatic surges in the past week. This trend has equally helped fuel the ongoing altcoin recovery and has, at the same time, sparked a new wave of bullish projections for the cryptocurrency.
Despite the current outlook, van de Poppe said he is still expecting the event of the past 24 hours to form a "buy the dip" season. In his estimation, the coin should correct to $27,300 to $27,700, at which point he expects there to be enough buyers.
The current surge is indicative that, at least in the short term, BTC buyers are more optimistic and interested in "buying the news."
Bitcoin spot ETF excitement
The rally that trailed the false news has generated a lot of positive comments, with some market experts noting that the short-lived rally is an indication of what will happen if the SEC eventually approves a Bitcoin spot ETF.
Many top investment and financial institutions are in the race to get their Bitcoin spot ETF applications approved. Besides, BlackRock, Invesco, WisdomTree and Bitwise are also in the race for the product. Bernstein analysts said the odds of securing approval for a BTC ETF is very high.