₿ Crypto & Digital Assets risk-off · 3–10 years
A what‑if from the future

What if Sovereign BTC reserve race becomes a geopolitical scramble?

After one state's reserve adoption, rivals follow to avoid being last, kicking off a competitive accumulation that structurally tightens BTC supply.

18%
our model probability
over 3–10 years
prediction markets — wisdom of the crowd
loading live odds…
Empirically anchored 18% · 90% range 4–33% · 40 analogues · measured class de_dollarization 94% in 10 yr · 3% held back for the unknown
how we built this number — every step
Measured class rate — de_dollarization ≈0.2857/yr → 94% in 10 yr94%
Analyst prior · editorial share 17% of the class16%
Pooled · weight 87%19%
Crowd — no liquid market
Reserve 3% · no extremizing (×1.0)19%
Published18%

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 3–10 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. After one state's reserve adoption, rivals follow to avoid being last, kicking off a competitive accumulation that structurally tightens BTC supply. The trigger decomposes into signed root‑shocks — Bitcoin ▲ · Crypto confidence ▲ · Dollar/reserve confidence ▼ · Geopolitical risk ▲ — 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▲ +6.2%
hist +1.82–+4.58% · other way +25.77% (n=12)
2Ether ETHon Hyperliquid 📈 chartCrypto▲ +4.2%
hist -8.24–+2.71% · other way +1.73% (n=12)
3Volatility (VIX) VIXon Hyperliquid 📈 chartVol▲ +3.8%
hist -0.92–+11.31% · other way +2.32% (n=12)
4Bitcoin BTCon Hyperliquid 📈 chartCrypto▲ +3.5%
hist -5.11–+2.82% · other way +3.71% (n=12)
5Solana SOLon Hyperliquid 📈 chartCrypto▲ +2.8%
hist -2.38–+4.42% · other way -4.22% (n=12)
6Coinbase COINon Hyperliquid 📈 chartEquity▲ +2.4%
hist -3.3–+13.84% · other way +20.0% (n=12)
7Nasdaq 100 NDXon Hyperliquid 📈 chartIndex▼ -1.5%
hist -1.05–-0.42% · other way -0.38% (n=12)
8Gold XAUon Hyperliquid 📈 chartCommodity▲ +1.1%
hist +0.17–+1.1% · other way -0.04% (n=12)
9Hyperliquid (HYPE) HYPEon HyperliquidCrypto▲ +1.1%
model prior · unmeasured
10S&P 500 SPXon Hyperliquid 📈 chartIndex▼ -0.9%
hist -0.48–-0.21% · other way +0.35% (n=12)
11Tech sector XLK 📈 chartEquity▼ -1.0%
hist -0.64–+0.0% · other way -0.31% (n=12)
12Semiconductors SMHon Hyperliquid 📈 chartEquity▼ -0.6%
hist -0.46–+0.32% · other way +2.34% (n=12)
13Nvidia NVDAon Hyperliquid 📈 chartEquity▼ -0.5%
hist -1.05–+0.15% · other way +3.29% (n=12)
1430y Treasury yield DGS30 📈 chartRate▲ +3bp
hist +0.71–+2.42% · other way +3.6% (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 gold hedge.
Also moves (not yet on Hyperliquid): Tech sector -1.0% · 30y Treasury yield +3bp · High-yield credit -0.4% · 10y Treasury yield +2bp · Lockheed +0.3% · Northrop +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 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 October 2024 Iranian ballistic-missile attack on Israel 2024-10 Trump assassination attempt 2024-07 Wagner Group mutiny against the Kremlin 2023-06 Russia cut from SWIFT + central-bank reserves frozen 2022-02 Saudi-Russia oil price war 2020-03 Chinese yuan breaks 7 per dollar; US names China manipulator 2019-08 Bitcoin Cash hash war capitulation 2018-11 North Korea sixth nuclear test 2017-09 North Korea 'fire and fury' nuclear scare 2017-08 OPEC abandons output defense, opting for market share vs US shale 2014-11 Cyprus deposit levy 2013-03 Egyptian revolution / Mubarak uprising 2011-01 US airline stocks plunge ~40% on first trading day after 9/11 2001-09 Hong Kong defends the peg with sky-high HIBOR 1997-10 Soviet August coup attempt against Gorbachev 1991-08 Tiananmen Square crackdown 1989-06 Louvre Accord 1987-02 1986 oil price collapse 1986-02 Reagan assassination attempt 1981-03 Gold peaks at $850 1980-01 Iran hostage crisis / US freezes Iranian assets 1979-11 Iranian Revolution oil shock 1978-12 Nixon Shock 1971-08 JFK assassination 1963-11 Cuban Missile Crisis 1962-10 Korean War begins 1950-06 FDR gold confiscation & revaluation 1933-04 Smoot-Hawley clears the US House 1929-05 First US spot Solana ETFs begin trading 2025-10 Gold tops $4,000 and silver spikes past $50 in historic squeeze 2025-10 Bitcoin reaches record near $126,000 2025-10 SEC clears first US Ethereum staking ETF 2025-09 US-China extend tariff truce by another 90 days 2025-08 Bitcoin tops $111,970 for a new all-time high 2025-05 US and China agree Geneva tariff truce, slashing rates 2025-05 Coinbase set to join the S&P 500 2025-05 Operation Sindoor: India strikes Pakistan after Pahalgam attack 2025-05
AssetHistory saysAbnormal (20d · 5d)HitnConfidencevs cascade
COIN COINLONG+11.5% · 5d +6.3%73%16 0.39✓ matches cascade
Volatility VIXLONG+8.3% · 5d +7.7%70%27 0.38✓ matches cascade
ETH ETHSHORT-8.2% · 5d -6.0%75%19 0.37⚠ differs
AVGO AVGOLONG+3.2% · 5d -1.1% ↺ fades66%24 0.29⚠ differs
XLF XLFSHORT-0.7% · 5d -0.5%65%25 0.26✓ matches cascade
Bitcoin BTCSHORT-6.0% · 5d -4.1%65%22 0.24⚠ differs
AMD AMDSHORT-0.0% · 5d -0.4%63%31 0.22✓ matches cascade
INTC INTCSHORT-3.1% · 5d -1.1%62%31 0.21✓ matches cascade
TRY TRYSHORT-0.6% · 5d +1.2% ↺ fades63%24 0.19⚠ differs
MRVL MRVLSHORT-0.2% · 5d -2.4%62%25 0.18✓ matches cascade
Gold XAULONG+0.5% · 5d -0.5% ↺ fades60%25 0.17✓ matches cascade
High-yield credit HYGSHORT-0.5% · 5d -0.2%61%24 0.17✓ matches cascade
USDJPY USDJPYLONG+0.8% · 5d -0.2% ↺ fades60%26 0.16⚠ differs
ASML ASMLSHORT-3.3% · 5d -3.5%60%26 0.14✓ 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.