It is true that Fidelity's apply for the Bitcoin Spot ETF is still unconfirmed, but the subject seems very likely to me. They certainly do not want to lag behind the competition that is BlackRock. And even if it turns out to be just a rumor, these events probably stopped some further declines in the crypto market.
That's too optimistic — knowing that BlackRock's spot ETF proposal isn't even guaranteed to go through even if you argue that it's likely.
Spoiler alert: a spot ETF isn't going to stop bitcoin from having price declines.