Goldman Sees $165 Billion Stock Selloff from Hedge Fund Leverage

AI Summary

Global hedge fund leverage is near multi-year highs, with gross leverage at approximately 294% in June 2025, per Goldman Sachs. JPMorgan anticipates that quarter-end rebalancing could lead to $165 billion in stock selloffs before the month concludes. Notably, Japan's $1.9 trillion Government Pension Investment Fund is the largest seller, reducing about $60 billion in stocks. This selling pressure comes as the Federal Reserve maintains rates, influencing volatility in the markets and amplifying concerns about potential sharp declines, especially in crowded tech positions. The implications for various sectors, including cryptocurrencies like Bitcoin (BTC), are significant.