Catenaa, Sunday, February 15, 2026- Goldman Sachs warned that a renewed US equity selloff could unleash up to $80 billion in additional stock selling, a scenario that may also weigh on bitcoin and broader crypto markets if risk aversion deepens.
In a note to clients cited by Bloomberg, Goldman’s trading desk said market stress remains elevated and liquidity conditions are thin, raising the risk of further volatility despite a late rebound in stocks last week.
The bank said the S&P 500 has already broken a short-term threshold that typically triggers selling by Commodity Trading Advisers, or CTAs, which adjust exposure based on price trends rather than fundamentals.
Goldman estimates CTAs could sell about $33 billion of US equities this week if weakness resumes.
Over the next month, models show as much as $80 billion in selling could be unlocked if the downturn accelerates. Even in flat or modestly rising markets, the bank expects these strategies to remain net sellers.
The desk said internal stress indicators have jumped sharply, with its Panic Index nearing levels tied to extreme fear.
It also flagged a shift in options dealer positioning toward short gamma, a setup that can amplify market swings by forcing dealers to buy into rallies and sell into declines.
While the warning focused on equities, Goldman noted that sustained stock market volatility often spills into crypto, which tends to trade as a high-risk asset during periods of macro stress.
A sharper risk-off move could pressure bitcoin through portfolio deleveraging and reduced risk-taking.
The outlook has revived debate over whether bitcoin can act as a hedge alongside gold.
Ark Invest founder Cathie Wood recently said she would favor bitcoin over gold in the current environment, arguing conditions for a traditional gold surge are not in place.
