Goldman Sachs warns $80B in systematic selling could hit Bitcoin and gold

Goldman Sachs warned that systematic funds could offload tens of billions of dollars in equities in the coming weeks. Trend-following Commodity Trading Advisers (CTAs) have already hit sell signals in the S&P 500 and are expected to remain net sellers near term; the bank estimates roughly $33 billion could be sold within a week and as much as $80 billion more over the next month if the S&P 500 continues to decline or breaches key technical levels.

Market conditions are fragile: liquidity has deteriorated and options positioning has shifted in ways that may amplify price swings. When dealers are positioned "short gamma" they are often forced to sell into falling markets and buy into rising ones, intensifying volatility and accelerating intraday moves.

Other systematic strategies, including risk-parity and volatility-control funds, still have room to reduce exposure, so selling pressure may not be limited to CTAs.

goldman sachs, systematic funds, ctas, trend-following, s&p 500, bitcoin, gold, liquidity, short gamma, risk-parity