Goldman Sachs Warns of CTA Driven Selling Pressure

Goldman Sachs says up to $33B in S&P 500 selling could hit this week from commodity trading advisors, trend following funds that cut exposure when momentum turns, according to Bloomberg.

If weakness persists, CTA liquidations could reach ~$80B over the next month, even in flat markets due to portfolio resets, adding downside risk to US equities.

The note highlights how systematic equity sell offs can spill into risk assets, a dynamic often felt across crypto during periods of market stress.