Key Takeaways
- •Goldman Sachs CEO predicts equity market drawdown in 12–24 months.
- •Previous tech cycles show overenthusiasm leads to corrections.
- •Institutional allocations to BTC, ETH may be indirectly affected.
Goldman Sachs CEO David Solomon, in an interview with Bloomberg TV on October 3, 2025, projected a possible equities drawdown within the next 12–24 months.
The projection underscores potential risks for equity and crypto markets, drawing analogies to the late‑1990s tech cycle.
Goldman Sachs CEO David Solomon stated in a Bloomberg TV interview that he expects an equity market drawdown in the next 12–24 months. The prediction follows a prolonged bull run driven by AI technology enthusiasm.
David Solomon, Goldman Sachs CEO since 2018, mentioned parallels to the late‑1990s tech cycle. He drew comparisons to new technology cycles that often see capital inflows and eventual market corrections.
“I sleep very well and am not going to bed every night worried about what will happen next... I wouldn't be surprised if in the next 12 to 24 months we see a drawdown with respect to equity markets. But that shouldn't be surprising given the run we've had” — David Solomon, CEO, Goldman Sachs
The potential drawdown could impact major indices like the S&P 500 and Nasdaq, known for setting records due to AI enthusiasm. Historical patterns suggest demand for major cryptocurrencies could also be affected during this period.
Solomon's remarks focus on traditional markets. Historical precedents demonstrate how equity market corrections often lead to liquidity challenges and risk sentiment shifts across broader financial assets, including cryptocurrencies.
While Solomon's predictions spotlight equities, crypto markets may indirectly feel the effects through varying institutional capital flows. Sentiment-driven movements in crypto are commonly influenced by traditional equity market trends.
Previous equity market corrections have seen fluctuations in cryptocurrency values. As the crypto market becomes more intertwined with traditional finance, regulatory scrutiny and technological innovations may further define market responses to such drawdowns.