News: Bitcoin experienced a notable pullback, dropping around 5% amidst bearish sentiment and concerns over potential regulatory scrutiny from the incoming Biden administration, as highlighted by Janet Yellen's comments. This selling pressure was exacerbated by profit-taking and increased short positions in derivatives markets. However, broader market sentiment remained somewhat positive due to expectations of fiscal stimulus, which supported a weaker dollar and kept Bitcoin trading around the $35K level. Ethereum also saw a significant drop after reaching a new all-time high, indicating general market volatility. Institutional developments, such as BlackRock allowing its funds to invest in Bitcoin futures, offer a long-term bullish signal, but short-term headwinds from regulatory concerns and profit-taking are currently dominating.

Market Probabilities: 
Bull 35% | Base 40% | Bear 25%

Recommendations: 
Short-term: HOLD
Long-term: BUY
{"sentiment": "neutral", "price_direction": "up", "impact_strength": "medium", "timeframe": "medium_term", "confidence": 0.5, "key_reason": "The integration of Bitcoin into major financial platforms like PayPal is a significant catalyst for "}