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Comment by koolba | Hacker News Reader

Call me old fashioned but it's a nice change of pace to see news about traditional market indexes crashing rather just crypto currencies.

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I'd prefer to see the news about cryptocurrencies crashing rather than traditional markets.

Well, you've got both today :) BTC hit a daily low of 6600 at about the same time that the Dow bottomed out.

It’s important to qualify that BTC’s “daily low of $6600” is actually only an 80 day low, and a price that was an all-time high on Nov 1st. The DJIA ”bottoming out" is so far just a return to prices from just over a month ago.

There’s a lot more room to go down.

Different reasons. I suspect this is due to traders taking their yearly profits and then stampede set in.

The volatility index has a very sudden spike at the end of the market

https://finance.yahoo.com/chart/%5EVIX/

It's due to interest rates and bond yields.

https://www.bloomberg.com/gadfly/articles/2018-02-05/stock-i...

Traders “taking their yearly profits” does not affect the market like this; such events would already be priced into the market. The Dow is not a crypto exchange.

> I suspect this is due to traders taking their yearly profits

Thought that happened in December, not February. A short year for traders this year, I guess.

(unintentional pun)

Nope, Nov through January are historically great months for stocks with February usually being one of the worst. One cause of this may be fiscal tax years not necessarily aligning with calendar tax years.

Edit: One of the more interesting and notable causes is that many fund managers and investment advisors will actually rebalance portfolios so that at years end it appears they were holding the biggest winner stocks/assets. Basically a marketing trick.

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