📈 Markets & Finance risk-off · 1–3 years
A what‑if from the future

What if Climate-tech funding bust: clean-energy startups fail en masse?

Higher rates and disappointing returns trigger a wave of clean-tech bankruptcies, denting clean-energy capex, sentiment and the broader transition timeline.

14%
our model probability
over 1–3 years
prediction markets — wisdom of the crowd
loading live odds…
Empirically anchored 14% · 90% range 1–27% · 40 analogues · measured class deflation 69% in 3 yr · 3% held back for the unknown
how we built this number — every step
Measured class rate — deflation ≈0.3895/yr → 69% in 3 yr69%
Analyst prior · editorial share 17% of the class12%
Pooled · weight 87%14%
Crowd — no liquid market
Reserve 3% · no extremizing (×1.0)14%
Published14%

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 1–3 years 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. Higher rates and disappointing returns trigger a wave of clean-tech bankruptcies, denting clean-energy capex, sentiment and the broader transition timeline. The trigger decomposes into signed root‑shocks — Clean-energy abundance ▼ · Credit spreads ▲ · Financial conditions ▲ · 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
1Energy sector XLEon Hyperliquid 📈 chartEquity▲ +1.2%
hist -1.44–+1.02% · other way -2.18% (n=9)
2Brent crude BRENTon Hyperliquid 📈 chartCommodity▲ +1.0%
hist -8.03–+0.16% · other way -3.76% (n=9)
3ExxonMobil XOM 📈 chartEquity▲ +0.9%
hist +0.05–+0.69% · other way +1.14% (n=12)
4WTI crude CLon Hyperliquid 📈 chartCommodity▲ +0.9%
hist -5.99–+0.99% · other way -4.29% (n=9)
5Solana SOLon Hyperliquid 📈 chartCrypto▼ -0.7%
hist -11.74–+4.05% · other way +3.81% (n=8)
6MicroStrategy MSTRon Hyperliquid 📈 chartEquity▼ -0.7%
hist -3.92–+0.74% · other way +16.4% (n=9)
7Nasdaq 100 NDXon Hyperliquid 📈 chartIndex▼ -0.6%
hist -0.58–-0.12% · other way -1.65% (n=10)
8Hyperliquid (HYPE) HYPEon HyperliquidCrypto▼ -0.6%
model prior · unmeasured
9Ether ETHon Hyperliquid 📈 chartCrypto▼ -0.6%
hist -4.42–+2.68% · other way +2.7% (n=8)
10Volatility (VIX) VIXon Hyperliquid 📈 chartVol▲ +0.5%
hist -0.85–+0.6% · other way +13.2% (n=10)
11Bitcoin BTCon Hyperliquid 📈 chartCrypto▼ -0.4%
hist -5.3–+1.97% · other way +6.09% (n=8)
12High-yield credit HYG 📈 chartRate▼ -0.4%
hist -0.64–+0.04% · other way +0.42% (n=9)
13United Airlines UAL 📈 chartEquity▼ -0.5%
hist -1.28–+1.78% · other way +25.6% (n=9)
14Tech sector XLK 📈 chartEquity▼ -0.4%
hist -0.45–+0.34% · other way -1.15% (n=9)

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): ExxonMobil +0.9% · High-yield credit -0.4% · United Airlines -0.5% · Tech sector -0.4% · Chevron +0.4% · Delta -0.5%

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.

Henry Hub natural gas hits a 25-year low amid record US production 2024-11 Waha hub natural gas prices crash to record negative on Permian glut 2024-08 Nikkei 225 record single-day rebound 2024-08 First Republic Bank seized and sold to JPMorgan 2023-05 Regional-bank panic deepens after Signature seizure 2023-03 NIF achieves fusion ignition 2022-12 Kaisa Group offshore default 2021-12 Saudi-Russia oil price war 2020-03 China stock-market circuit-breaker fiasco 2016-01 SNB introduces negative interest rates 2014-12 Russian ruble 'Black Tuesday' 2014-12 HYG record outflows in 2014 high-yield rout 2014-10 Mt. Gox collapse 2014-02 Mt. Gox halts withdrawals 2014-02 Cyprus deposit bail-in 2013-03 Spain requests EUR100bn bank bailout 2012-06 Bankia nationalised in Spain's banking crisis 2012-05 Portugal requests EU-IMF bailout 2011-04 EU/IMF EUR750bn rescue weekend 2010-05 Greece first EU/IMF bailout 2010-05 Greece requests EU/IMF bailout 2010-04 Anglo Irish Bank nationalisation 2009-01 Fannie Mae and Freddie Mac conservatorship 2008-09 IndyMac Bank seized by the Office of Thrift Supervision 2008-07 2008 global rice crisis: Thai benchmark tops $1,000/ton 2008-04 Northern Rock bank run 2007-09 American Home Mortgage bankruptcy 2007-08 Bear Stearns freezes redemptions on subprime hedge funds 2007-06 New Century Financial bankruptcy 2007-04 Turkey lets the lira float 2001-02 Mexico $50bn international rescue package 1995-01 Soviet August coup attempt against Gorbachev 1991-08 Gulf War air campaign begins 1991-01 Hong Kong Stock Exchange four-day closure after Black Monday 1987-10 1986 oil price collapse 1986-02 Penn Square Bank failure 1982-07 Cuban Missile Crisis 1962-10 US intervention removes Maduro in Venezuela 2026-01 India RBI growth-pivot rate cut 2025-12 Gold tops $4,000 and silver spikes past $50 in historic squeeze 2025-10
AssetHistory saysAbnormal (20d · 5d)HitnConfidencevs cascade
BRENT BRENTSHORT-6.1% · 5d -3.4%84%30 0.58⚠ differs
SOL SOLSHORT-10.6% · 5d -11.0%88%10 0.49✓ matches cascade
CL CLSHORT-5.1% · 5d -3.4%76%33 0.39⚠ differs
Bitcoin BTCSHORT-4.8% · 5d -4.3%69%15 0.32✓ matches cascade
30y yield DGS30SHORT-14bp · 5d -3bp65%39 0.28⚠ differs
MSTR MSTRSHORT-3.2% · 5d -3.6%66%33 0.26✓ matches cascade
COIN COINSHORT-5.0% · 5d +2.6% ↺ fades65%10 0.24✓ matches cascade
10y yield DGS10SHORT-16bp · 5d -4bp62%39 0.23⚠ differs
DAL DALLONG+3.0% · 5d -1.1% ↺ fades60%31 0.20⚠ differs
SMH SMHLONG+1.5% · 5d -1.0% ↺ fades61%33 0.19⚠ differs
XLE XLESHORT-1.8% · 5d -2.0%61%33 0.18⚠ differs
XLF XLFSHORT-0.7% · 5d -1.2%60%33 0.18✓ matches cascade
Gold XAULONG+0.5% · 5d -0.4% ↺ fades60%33 0.18·
High-yield credit HYGSHORT-0.4% · 5d +0.0% ↺ fades59%31 0.15✓ matches cascade

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.