Goldman Sachs: Trend-Following Hedge Funds Could Sell $39B-$65B of Global Stocks After S&P 500 Dips Below Key Level

Goldman Sachs, in a client note, warned that the S&P 500 slipping below a key threshold could prompt trend-following hedge funds to trim risk, potentially triggering a wave of selling in global equities next week. The bank estimates roughly $39 billion may be shed, with deeper declines inviting further liquidation.

Should downside momentum persist, Goldman projects that risk controls could unleash up to about $65 billion in stock disposals. While these flows are anchored in equities, they can impact crypto markets by contracting liquidity and upping volatility in leading assets such as Bitcoin and Ethereum.

For traders, the takeaway is clear: monitor macro risk appetite and maintain disciplined liquidity planning across asset classes, recognizing that traditional market dynamics increasingly influence digital-asset correlations and portfolio resilience.