Goldman Sachs Warns of Market Volatility as Risk Appetite Declines

Goldman Sachs' Risk Appetite Indicator has sharply fallen below zero, indicating that investors are willing to take less risk. More money is flowing into bonds, gold, and the Japanese yen. The sentiment in the financial markets has deteriorated, dropping to the 46th percentile, the lowest level since April. Hedge funds have reduced their net exposure to the market, meaning they are betting less on rising prices. Goldman Sachs points to strong convictions among both optimists and pessimists, which could lead to greater market volatility. The recent sell-off in AI stocks has resulted in a shift of investments towards U.S. Treasury bonds, causing Bitcoin to briefly drop below $80,000 on October 15. Despite Goldman Sachs' warning, this does not necessarily mean a new decline for Bitcoin. HSBC sees selling pressure mainly among chip companies, while Bitwise reports that Bitcoin has recently held up better than other risky investments. The upcoming period, with the U.S. interest rate decision on October 28, will be crucial for Bitcoin's price development.