₿ Crypto & Digital Assets risk-off · 0–6 months
A what‑if from the future

What if BTC trades as risk-beta: stocks-down day takes crypto down harder?

In a risk-off equity tape, BTC behaves as high-beta tech rather than a hedge, selling off more than the S&P as leveraged longs are liquidated.

27%
our model probability
over 0–6 months
prediction markets — wisdom of the crowd
loading live odds…
Empirically anchored 27% · 90% range 8–46% · 40 analogues · measured class vol_spike 31% in 6 mo · 3% held back for the unknown
how we built this number — every step
Measured class rate — vol_spike ≈0.7371/yr → 31% in 6 mo31%
Analyst prior · editorial share 100% of the class45%
Pooled · weight 87%28%
Crowd — no liquid market
Reserve 3% · no extremizing (×1.0)28%
Published27%

The class rate is measured from our dated, sourced event library (decade-normalized Poisson — the full table is public at base_rates.json). The variant’s share within its class is the analyst’s editorial call, published so you can audit it. A wider range means thinner precedent. Full recipe: methodology · scored at Reality Check.

The butterfly cascade

How this trigger trickles across markets, left → right — the root shock, its first‑order moves, then the ripple effects. Drag any node; tap a market for its real price history.

Resolution timeline — how this probability is moving

Our model's odds (gold) over time vs the crowd's (Polymarket, blue), from the past toward the 0–6 months horizon. Each dot is a real macro event that nudged the probability — green pushed it up, red pushed it down. Tap a dot for the source. The gold path is an illustrative reconstruction anchored to today's estimate — real dated events, not a live re-estimate history.

loading the timeline…

What it would mean

If this plays out, it is a risk-off shock. In a risk-off equity tape, BTC behaves as high-beta tech rather than a hedge, selling off more than the S&P as leveraged longs are liquidated. The trigger decomposes into signed root‑shocks — Bitcoin ▼ · Volatility (VIX) ▲ · Crypto confidence ▼ · Risk appetite ▼ — which propagate through our causal graph to the markets below.

If it happens — the markets it would move

Biggest moves first. Projected moves are cascade-model priors; hist A–B% = what comparable past events actually did (measured abnormal returns), and model prior · unmeasured marks markets with no analogue backing yet. Tap any market for its price history.

MarketClassProjected move
1MicroStrategy MSTRon Hyperliquid 📈 chartEquity▼ -4.6%
hist -3.77–+0.25% · other way -5.96% (n=12)
2Ether ETHon Hyperliquid 📈 chartCrypto▼ -3.4%
hist -10.8–+1.36% · other way -3.85% (n=12)
3Solana SOLon Hyperliquid 📈 chartCrypto▼ -2.7%
hist -7.12–+0.56% · other way -15.5% (n=12)
4Bitcoin BTCon Hyperliquid 📈 chartCrypto▼ -2.6%
hist -3.69–+0.08% · other way -3.27% (n=12)
5Coinbase COINon Hyperliquid 📈 chartEquity▼ -1.8%
hist -1.33–-0.05% · other way +6.46% (n=12)
6Hyperliquid (HYPE) HYPEon HyperliquidCrypto▼ -1.5%
model prior · unmeasured
7Volatility (VIX) VIXon Hyperliquid 📈 chartVol▲ +0.8%
hist -2.61–+1.57% · other way +2.0% (n=12)
8Nasdaq 100 NDXon Hyperliquid 📈 chartIndex▼ -0.7%
hist -0.65–-0.16% · other way -0.02% (n=12)
9S&P 500 SPXon Hyperliquid 📈 chartIndex▼ -0.4%
hist -0.27–+0.21% · other way +0.34% (n=12)
10Tech sector XLK 📈 chartEquity▼ -0.4%
hist -0.36–+0.14% · other way +0.57% (n=12)
11Semiconductors SMHon Hyperliquid 📈 chartEquity▼ -0.3%
hist -0.54–+1.1% · other way +1.35% (n=12)
12High-yield credit HYG 📈 chartRate▼ -0.2%
hist -0.19–+0.21% · other way +0.08% (n=12)
13Nvidia NVDAon Hyperliquid 📈 chartEquity▼ -0.2%
hist -0.54–+0.76% · other way -0.46% (n=12)
14AMD AMDon Hyperliquid 📈 chartEquity▼ -0.2%
hist -0.26–+0.25% · other way +6.59% (n=12)

Probable recommendation

If the scenario above plays out, the probable cross‑asset positioning → a scenario‑conditional read, not personalized investment advice
Cash / hedgeRaise cash and hold the long hedges above; this scenario is net risk-off.
For a common-man portfolio: A typical stock-heavy portfolio is at risk. Consider trimming equities, raising cash, and a small cash hedge.
Also moves (not yet on Hyperliquid): Tech sector -0.4% · High-yield credit -0.2%

Historical precedent — what analogous events actually did

Across 40 analogous events (overlap‑weighted), as abnormal returns — market beta stripped, so it's the event's own effect, not the market backdrop. Shown at 20 days (persistent) and 5 days (immediate); ↺ fades = the two horizons disagree. Confidence = consistency × sample × significance.

Israel strikes Iran — Operation Rising Lion 2025-06 VIX third-highest spike on record 2024-08 Solana craters toward $8 on FTX/Alameda overhang 2022-12 CoinDesk exposes Alameda's FTT-heavy balance sheet 2022-11 Three Arrows Capital liquidation order 2022-06 Celsius Network freezes withdrawals 2022-06 Evergrande debt crisis - global selloff 2021-09 Bitcoin May 2021 crash 2021-05 COVID-19 fourth circuit breaker 2020-03 Saudi-Russia oil price war 2020-03 Worst Christmas Eve selloff on record 2018-12 Nvidia crypto-glut guidance crash 2018-11 February 2018 hot wage print triggers rate scare 2018-02 North Korea 'fire and fury' nuclear scare 2017-08 August 24, 2015 ETF flash crash 2015-08 Mt. Gox collapse 2014-02 Mt. Gox halts withdrawals 2014-02 Bitcoin April 2013 Mt. Gox-overload crash 2013-04 Cyprus deposit bail-in 2013-03 SEC approves Limit Up-Limit Down plan and revised market-wide circuit breakers 2012-05 US-downgrade Black Monday equity rout and VIX spike to 48 2011-08 Egyptian revolution / Mubarak uprising 2011-01 VIX record intraday high of 89.53 2008-10 Shanghai Sneeze global selloff with then-record VIX spike 2007-02 Hong Kong Stock Exchange four-day closure after Black Monday 1987-10 Record $19bn crypto liquidation cascade 2025-10 Gold tops $4,000 and silver spikes past $50 in historic squeeze 2025-10 Tariff-pause record rally and VIX collapse 2025-04 China retaliates to Liberation Day: 34% tariffs + rare-earth controls 2025-04 Gold tops $3,000 for the first time amid tariff and rate-cut fears 2025-03 Tesla shares crater on DOGE political backlash and Europe sales collapse 2025-03 Bybit hack 2025-02 TSMC slumps as DeepSeek roils AI-chip demand assumptions 2025-02 Micron's weak FQ2 guidance sparks a sharp December selloff 2024-12 ASML bookings-miss crash 2024-10 October 2024 Iranian ballistic-missile attack on Israel 2024-10 Gold tops $2,500 for the first time on Fed rate-cut bets 2024-08 Nikkei 225 record single-day rebound 2024-08 Nikkei 225 worst single-day crash since 1987 2024-08 KOSPI biggest-ever point loss triggers circuit breaker 2024-08
AssetHistory saysAbnormal (20d · 5d)HitnConfidencevs cascade
SOL SOLSHORT-5.2% · 5d -10.7%71%23 0.32✓ matches cascade
MU MUSHORT-3.1% · 5d -1.7%70%40 0.31✓ matches cascade
ETH ETHSHORT-8.1% · 5d -9.2%68%28 0.29✓ matches cascade
SPX SPXLONG+0.4% · 5d -0.8% ↺ fades62%40 0.23⚠ differs
Gold XAULONG+0.9% · 5d +-0.0% ↺ fades59%39 0.17·
SMH SMHLONG+1.2% · 5d +0.2%59%39 0.15⚠ differs
High-yield credit HYGLONG+0.3% · 5d -0.1% ↺ fades58%38 0.12⚠ differs
AVGO AVGOLONG+1.6% · 5d -0.8% ↺ fades56%37 0.11⚠ differs
Volatility VIXSHORT-2.9% · 5d +3.4% ↺ fades56%39 0.10⚠ differs
TSM TSMLONG+0.7% · 5d -0.3% ↺ fades56%39 0.09⚠ differs
MRVL MRVLLONG+1.5% · 5d -0.7% ↺ fades56%39 0.09⚠ differs
NDX NDXSHORT-0.2% · 5d -1.3%54%40 0.06✓ matches cascade
US dollar DXYSHORT-0.2% · 5d +0.1% ↺ fades54%40 0.06·
10y yield DGS10SHORT-12bp · 5d -3bp52%40 0.04·

Methodology. Probability and impact are anchored to history and scored against what actually happens — wins and losses, in public, at Reality Check. Crowd odds live from Polymarket & Kalshi. By Vikas Singh, Quantitative Strategist. Updated 2026-07-03.