Pepe coin price bounced back this week, hitting the key resistance level at $0.00008035

Pepe coin price has rebounded for both fundamental and technical reasons. Fundamentally, it rallied as the broader financial market embraced a risk-on sentiment

input: Despite a strong start to the year, 2024 has not quite met the lofty predictions of a Bitcoin price above $100,000 by the end of December. However, with the year rapidly drawing to a close, a final push could still propel Bitcoin to breach the $50,000 mark by December 31.

Earlier this year, several cryptocurrency analysts and technical traders, including Vijay Ayengar and Mati Greenspan, boldly predicted that Bitcoin would soar above the $100,000 threshold by December. Their predictions were largely based on the cryptocurrency’s impressive performance in 2023, particularly its swift recovery from the 2022 bear market.

Earlier this year, a broad selloff in cryptocurrencies occurred as investors reacted to the U.S. government’s efforts to seize funds from cryptocurrency exchange accounts. This selloff pushed Bitcoin to drop below the key $30,000 level, the same level it fell to during the 2022 bear market.

However, the cryptocurrency quickly rebounded after the U.S. government dropped its attempt to seize the funds. This recovery was further fueled by rising inflation expectations and the anticipation of a U.S. economic slowdown.

In March, the Consumer Price Index (CPI) data for February came in higher than economists’ estimates, indicating that inflation was not yet slowing down. This development led to a selloff in the stock market, but it also pushed Bitcoin to rally above the $35,000 level.

At the time, Greenspan, an economist at the cryptocurrency trading platform eToro, said that while the selloff in the stock market was not ideal, it was not unexpected either. He explained that with inflation showing no signs of slowing down, it was natural for investors to rotate out of stocks and into bonds.

Moreover, Greenspan noted that the outlook for U.S. economic growth had deteriorated since the last set of economic data was released. A broader selloff in the stock market could occur if the outlook for U.S. economic growth continued to worsen.

However, in recent months, the outlook for the U.S. economy has improved, and several analysts at large banking groups have begun to encourage their customers to buy the dip in the stock market.

These analysts, including those from Evercore ISI, JPMorgan, and Morgan Stanley, believe that the fear of Donald Trump’s reciprocal tariffs, which could affect a broad range of goods, has now been fully priced into the market by the time it hit on December 1.

After months of anticipation, Trump announced that he would be imposing a 25% tariff on several French products in retaliation for France’s taxes on U.S. digital services companies.

The threatened tariffs on $2.4 billion worth of goods, including champagne, cheese, and handbags, were part of a broader dispute that began in 2023 with a U.S. investigation into France’s digital services tax.

The tariffs were set to take effect on January 1, 2024, but they were later postponed to December 1.

In April, the U.S. trade representative announced that the tariffs on $1.3 billion worth of goods from France would be postponed yet again.

However, the tariffs on another $1.1 billion worth of goods, which were set to take effect on December 1, would remain in place. These tariffs would affect a broad range of goods, including cheese, champagne, and handbags.

The escalation of the trade dispute came after the Organization for Economic Cooperation and Development (OECD) failed to reach an agreement on a global minimum corporate tax rate.

The U.S. had previously threatened tariffs on $2.4 billion worth of goods from France in response to the digital services tax. However, in May, the Biden administration decided against imposing the tariffs.

Instead, the administration opted to continue negotiating with France and other members of the Organization for Economic Cooperation and Development (OECD) to reach an agreement on a global minimum corporate tax rate.

The digital services tax, which was introduced by France in 2019, is designed to ensure that large online companies pay their fair share of tax in the country where their users are located.

The tax is levied on revenue from services such as web advertising, social media platforms, and online marketplaces.

France's move to introduce the digital services tax was met with criticism from the U.S., which argued that the tax was discriminatory against American companies.

In 2023, the two countries agreed to put the dispute on hold while they worked together to try to reach an agreement on a global minimum corporate tax rate.

However, despite months of negotiations, no agreement was reached.

As a result, the U.S. decided to move ahead with imposing tariffs on French goods.

The tariffs are expected to affect a wide