Bitcoin falls 50% in crypto crash

 (20 May 2021) The speculative mania in cryptocurrencies has suffered a body blow over the past week as the price of Bitcoin has fallen 50%.  Bitcoin had traded as high as $60,000 in early May but briefly touched the $30,000 level on Wednesday.  It has recovered somewhat today and is currently valued at $42,000.   Other currencies like Ethereum and Dogecoin have followed suit as the air has suddenly gone out of the crypto balloon.  As it happens, the troubles coincided with Elon Musk's much-anticipated appearance on Saturday Night Live on May 8.  Musk is a big booster of crypto and his company Tesla even bought a large stake in Bitcoin and was preparing to accept payment for his cars in Bitcoin. 

But things changed recently as Bitcoin's massive energy use and greenhouse gas emissions have become a lightning rod for criticism.  Last week, Musk himself was forced to admit that Bitcoin's huge carbon footprint essentially disqualified it from becoming a viable alternative currency in its current form.  Musk also backtracked on his promise to accept Bitcoin as payment for Tesla vehicles. 

The stunning collapse is not surprising to financial astrologers, however.   Last December, I suggested that the rally in Bitcoin could run out of gas in May as Saturn stationed in a near-exact 30 degree alignment with the natal Sun in the Bitcoin horoscope.  While this is not a full-strength Vedic aspect, I have found that any exact 30-degree alignments can be powerful when a planet is stationing (i.e. reversing its direction).  Saturn is due to turn retrograde on Sunday, May 23 at 19 degrees of sidereal Capricorn and thus highlights this middle and late May period as one that is heavily influenced by Saturn. 

As we know, stationing planets become more powerful in their alignments so that benefics like Jupiter gain an extra capacity to deliver rewards and gains, while stations of malefics like Saturn carry an additional measure of hardship and loss.  The affliction was intensified by the Mars opposition to the Sun and transiting Rahu's aspect to natal Rahu. 

Interestingly, there is also a near-exact conjunction of transiting Jupiter to natal Venus at 6 Aquarius this week.  While this is usually a very positive influence, I find that the negative effects of Saturn transits tend to outweigh the positive effects of Jupiter transits if they happen around the same time.  That said, it is also possible to see today's big bounce back over $40,000 in terms of the mitigating effects of Jupiter on the Saturn-to-Sun alignment. 

The future may bring more volatility for Bitcoin and the other cryptocurrencies.  While some additional upside bounce is likely in the days ahead from that Jupiter-Venus conjunction, the month of June seems bearish as Mars will transit across the natal Ascendant and thereby oppose Saturn.  July may be a more likely time for a stronger rebound as Jupiter turns retrograde and again conjoins natal Venus. 


Weekly Market Forecast

Stocks have been choppy over the past week as persistent inflation concerns have undermined sentiment despite Fed assurances to maintain its asset purchases and keep interest rates at zero.  After some early week selling, US stocks have rebounded over the past two days as the Sun approaches it alignment with Jupiter.  As I noted last week, however, we are currently passing through a higher risk period around the time of the Saturn retrograde station.  Therefore, rallies may be less likely to be sustainable in the near term, although short term bounces are still possible. 

Next week could see some volatility as Wednesday's lunar eclipse looks bearish.  Lunar eclipses are not always bearish but this one forms a close 45-degree alignment with Mars and thus we could see some violent or disruptive events shake financial markets.  We could therefore see some down days next week, especially around the time of the eclipse. 


For more details, check out my weekly subscriber newsletter which is published every Saturday afternoon (EST).   I outline the key technical and planetary influences for US and Indian stocks for the short and medium term, as well as currencies, gold and oil.


Photo Credit: Michael Wuensch

Stocks dive on inflation fears

  (13 May 2021) Inflation fears have hit financial markets this week as April's annual rate of 4.2% was the highest in 13 years.  Most commodities like oil, copper and oil have enjoyed sharp price increases in 2021, but this huge CPI number now forces investors to consider the risks of possible Fed tightening sooner than expected.  Inflation is bad enough for markets, but premature Fed tightening would be worse as it would mean less liquidity and faster tapering of the Fed's QE asset purchases. 

This week's decline is not unexpected given the difficult planetary alignments. As I have noted previously, the month of May looked much less bullish for stocks than April due to the prominence of Saturn.  This week Saturn has come under the double afflictions of Rahu (North Lunar Node) and Mars.  Saturn is a bearish planet, of course, and this double dose of negativity translated sharp falls across many markets.  The S&P 500 was down more than 4% from its high last week, although today did see an oversold bounce as dip buyers stepped in at key support.

With Mars due to exactly aspect Saturn tomorrow (Friday), it is quite possible we could see further downside in the coming days.  While Mars will be separating from its aspect with Saturn next week, there remains further downside risk in May as Saturn is due to turn retrograde on May 23.

Direct and retrograde stations can coincide with significant events since the planet becomes more powerful as it appears to stop and reverse its direction in the sky from our vantage point on Earth.  At the same time, it is important to remember than not every period around the time of Saturn retrograde stations -- they happen once a year -- coincides with stock market declines.  As always, other factors must confirm.  Nonetheless, by itself, the Saturn station is an underlying bearish influence that should not be ignored. 

And we should also note with the start of Saturn's four-month retrograde cycle, it is due to again form a tense square aspect with Uranus on June 14.  Readers will recall that the late February sell-off began on the first Saturn-Uranus square aspect on February 16.  This second Saturn-Uranus square could therefore see significant volatility returning some time around that June 14 date. 

It is shaping up to be an eventful summer.


For more details, check out my weekly subscriber newsletter which is published every Saturday afternoon (EST).   I outline the key technical and planetary influences for US and Indian stocks for the short and medium term, as well as currencies, gold and oil.

Saturn threatens Biden's honeymoon

 (6 May 2021) By all accounts, Joe Biden has taken firm control of the reins of power in Washington, DC during his first 100 days in the presidency.  Biden has overseen the successful vaccine rollout and authored bold stimulus and infrastructure proposals worth more than $5 Trillion.  The infrastructure plan is also designed to tackle growing inequality by raising taxes on the wealthy while making improvements in education and housing that benefit lower income people.  

Despite the usual partisan criticisms, these initiatives seem fairly popular so far with Biden enjoying a 53-41 approval rating.  But as history shows, the honeymoon of new presidents doesn't last forever.  In Biden's case, I suspect that things may take a turn quite soon. 

As I have noted previously, Biden is likely to have to face some very challenging situations here in the month of May.  There are several simultaneous afflictions to his chart that suggest these will not be handled easily or routinely. 

Most significantly, Saturn is due to station retrograde on May 23 at 19 Capricorn and form an exact square aspect to his Mars (19 Libra).  The opposition from Uranus to the Mars only serves to intensify this affliction.   Due to its rulership of Biden's 1st and 6th houses, Mars symbolizes health and vitality, both of Biden personally as well as the country as a whole. 

This Saturn affliction to his Mars therefore could manifest as a health challenge, including a possible setback in the Covid pandemic.  I have previously suggested that the serious nature of these aspects could ultimately threaten his tenure as president at some point in 2021, possibly as soon as June.

In addition, Rahu (North Lunar Node) is conjunct Biden's Saturn (16 Taurus).  This is often a negative influence that can represent a disruption (Rahu) of norms, traditions and structures (Saturn).  Some of the contours of this situation could begin to manifest early next week as Mercury will also conjoin Rahu and natal Saturn. 

Next week will also see transiting Mars participate in this Saturn alignment as it is due to exactly align with Saturn and the natal Mars on May 14.  This is another potentially significant time window for events to unfold. 

While I have highlighted health and pandemic concerns, I would also note that the horoscope of China is quite afflicted here in May also.  The Saturn retrograde station will be within two degrees of natal Mars (21 Cancer) while the transiting Mars (19 Gemini) will cast its exact square aspect on the natal Mercury-Neptune-Ketu in the natal chart.  Given the recent tensions between China and the West over Taiwan, the Uyghurs and other issues, it is quite possible that new tensions could emerge around the time of these transits.


Weekly Market Forecast

Stocks have generally moved sideways in recent days.  Inflation worries have been largely offset by the broadening vaccination program around the world despite ongoing lockdowns in India, Europe and Canada.  Last week I suggested that May could begin an a sour note given this past Monday's Sun-Saturn square.  As it happened, however, the selling actually took place a day later on Tuesday although the market has largely recovered so far this week. 

Next week's planets suggest an elevated downside risk.  The Mercury-Rahu conjunction aligns with Mars on Monday and Tuesday while Mars casts its 8th house aspect to Saturn on Thursday and Friday.  Both of these patterns seem likely to correspond to some declines. 


For more details, check out my weekly subscriber newsletter which is published every Saturday afternoon (EST).   I outline the key technical and planetary influences for US and Indian stocks for the short and medium term, as well as currencies, gold and oil.


Biden photo: Gage Skidmore