⚔ Geopolitics risk-off · 3–10 years
A what‑if from the future

What if the world splits into rival US and China tech blocs?

A US/China tech-and-payment bloc split is a supply-chain-and-tariff shock, so the cleanest trade is short the chip complex (TSMC, Nvidia, ASML) and Alibaba with the yuan weaker, while bitcoin catches a small neutral-rail bid. Direct rhyme is the Apr 2025 US-China tariff peak (both sides >100%) that hammered semis and China ADRs. Forward angle: bifurcation forces duplicate capex and inventory across both blocs — margin-dilutive for the whole semi chain, and TSMC sits on the fault line as the single most exposed name.

40%
our model probability
over 3–10 years
prediction markets — wisdom of the crowd
loading live odds…
Empirically anchored 40% · 90% range 21–58% · 40 analogues · measured class supply_chain 87% in 10 yr · 3% held back for the unknown
how we built this number — every step
Measured class rate — supply_chain ≈0.2052/yr → 87% in 10 yr87%
Analyst prior · editorial share 46% of the class40%
Pooled · weight 87%41%
Crowd — no liquid market
Reserve 3% · no extremizing (×1.0)41%
Published40%

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. The world bifurcates into US-led and China-led tech and payment blocs. The trigger decomposes into signed root‑shocks — Trade tension ▲ · Semiconductor supply risk ▲ · Dollar/reserve confidence ▼ — 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
1TSMC TSMon Hyperliquid 📈 chartEquity▼ -2.1%
hist -1.68–-0.58% · other way +1.64% (n=12)
2Nvidia NVDAon Hyperliquid 📈 chartEquity▼ -1.9%
hist -1.12–-0.5% · other way +4.13% (n=12)
3Semiconductors SMHon Hyperliquid 📈 chartEquity▼ -1.9%
hist -1.3–-0.66% · other way +1.4% (n=12)
4Nasdaq 100 NDXon Hyperliquid 📈 chartIndex▼ -1.9%
hist -1.51–-0.32% · other way -0.05% (n=12)
5ASML ASMLon Hyperliquid 📈 chartEquity▼ -1.4%
hist -3.84–+0.95% · other way -0.91% (n=12)
6AMD AMDon Hyperliquid 📈 chartEquity▼ -1.3%
hist -0.98–-0.17% · other way -2.72% (n=12)
7Broadcom AVGOon Hyperliquid 📈 chartEquity▼ -1.3%
hist -1.03–+1.16% · other way +5.76% (n=12)
8Micron MUon Hyperliquid 📈 chartEquity▼ -1.3%
hist -4.49–+0.59% · other way -1.7% (n=12)
9Marvell MRVLon Hyperliquid 📈 chartEquity▼ -1.3%
hist -0.82–-0.22% · other way -0.28% (n=12)
10Tech sector XLK 📈 chartEquity▼ -1.3%
hist -0.97–-0.36% · other way +0.37% (n=12)
11Alibaba BABAon Hyperliquid 📈 chartEquity▼ -1.1%
hist -1.35–-0.09% · other way -0.79% (n=12)
12Qualcomm QCOMon Hyperliquid 📈 chartEquity▼ -0.9%
hist -4.04–+0.88% · other way -3.2% (n=12)
13Chinese yuan CNY 📈 chartFX▼ -0.7%
hist -0.7–-0.11% · other way +-0.0% (n=12)
14MicroStrategy MSTRon Hyperliquid 📈 chartEquity▲ +0.8%
hist +0.04–+0.95% · other way +8.12% (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 -1.3% · Chinese yuan -0.7% · Freeport (copper) -0.4% · 30y Treasury yield +3bp · 10y Treasury yield +2bp · Aussie dollar -0.2%

Why we may diverge from history

Trust the cascade LONG on COIN: history's -1% averages a chaotic off-channel mix of 2022-24 single-stock crashes (Netflix, ASML) with nothing to do with a tech-bloc splinternet; noisy, off-channel, base rate unreliable.

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.

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 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 Megacap AI-capex doubt selloff 2024-07 Trump 'Taiwan should pay for defense' chip selloff 2024-07 Netflix subscriber-loss crash 2022-04 Russia cut from SWIFT + central-bank reserves frozen 2022-02 Meta 2022-02 Didi removed from China app stores after NYSE IPO 2021-07 Chinese yuan breaks 7 per dollar; US names China manipulator 2019-08 Nvidia crypto-glut guidance crash 2018-11 Mexican peso crash on Trump 2016 win 2016-11 Louvre Accord 1987-02 Iranian Revolution oil shock 1978-12 Nixon Shock 1971-08 FDR gold confiscation & revaluation 1933-04 Smoot-Hawley clears the US House 1929-05 Record $19bn crypto liquidation cascade 2025-10 Gold tops $4,000 and silver spikes past $50 in historic squeeze 2025-10 US-China extend tariff truce by another 90 days 2025-08 Trump's 50% copper tariff sends Comex copper to a record 2025-07 Israel strikes Iran — Operation Rising Lion 2025-06 US and China agree Geneva tariff truce, slashing rates 2025-05 Tariff-pause record rally and VIX collapse 2025-04 Trump signs 25% Section 232 tariff on imported automobiles 2025-03 Tesla shares crater on DOGE political backlash and Europe sales collapse 2025-03 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 VIX third-highest spike on record 2024-08 Report of a Blackwell design flaw signals a multi-month delay 2024-08 Intel's Q2 earnings trigger its worst single-day crash since 1974 2024-08 India slashes gold import duty from 15% to 6% in 2024 budget 2024-07 India's Modi loses single-party majority 2024-06 Mexico's Sheinbaum landslide + supermajority scare 2024-06 Nikkei 225 surpasses its 1989 bubble peak 2024-02
AssetHistory saysAbnormal (20d · 5d)HitnConfidencevs cascade
KWEB KWEBSHORT-3.7% · 5d -1.5%73%35 0.39✓ matches cascade
Gold XAULONG+1.6% · 5d -0.1% ↺ fades71%35 0.36✓ matches cascade
COIN COINSHORT-3.2% · 5d -0.3%67%32 0.30⚠ differs
MU MUSHORT-3.4% · 5d -3.0%68%36 0.28✓ matches cascade
INTC INTCSHORT-5.5% · 5d -3.2%64%36 0.27✓ matches cascade
FCX FCXSHORT-1.9% · 5d -1.8%67%35 0.27✓ matches cascade
SPX SPXLONG+0.1% · 5d -0.5% ↺ fades64%38 0.26⚠ differs
NDX NDXSHORT-0.6% · 5d -1.3%66%36 0.21✓ matches cascade
XCU XCUSHORT-0.7% · 5d -0.6%62%35 0.21✓ matches cascade
QCOM QCOMSHORT-3.3% · 5d -2.8%62%35 0.19✓ matches cascade
AVGO AVGOLONG+1.7% · 5d -2.0% ↺ fades60%35 0.18⚠ differs
NVDA NVDASHORT-0.2% · 5d -2.5%62%35 0.17✓ matches cascade
Bitcoin BTCSHORT-4.2% · 5d -3.0%60%35 0.16⚠ differs
US dollar DXYSHORT-0.2% · 5d +0.1% ↺ fades58%38 0.14·

Why this probability

Tech/payment bifurcation already advancing via tariffs and export controls; decade-long trend. A base‑rate‑anchored prior, continuously scored against what actually happens — not a forecast.

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.