🏛 Central Banks & Macro risk-off · 6–18 months
A what‑if from the future

What if USD/Treasuries safe-haven bid on trade shock?

An abrupt trade-war escalation drives a classic flight into US Treasuries and the dollar despite the US being at the center, flattening the curve as growth fears bite.

27%
our model probability
over 6–18 months
prediction markets — wisdom of the crowd
loading live odds…
Empirically anchored 27% · 90% range 13–40% · 40 analogues · measured class recession 94% in 18 mo · 3% held back for the unknown
how we built this number — every step
Measured class rate — recession ≈1.9335/yr → 94% in 18 mo94%
Analyst prior · editorial share 32% of the class30%
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 6–18 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. An abrupt trade-war escalation drives a classic flight into US Treasuries and the dollar despite the US being at the center, flattening the curve as growth fears bite. The trigger decomposes into signed root‑shocks — Yield-curve slope ▼ · Dollar/reserve confidence ▲ · Recession signal ▲ · 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▼ -3.4%
hist -2.63–-0.99% · other way +24.57% (n=12)
2Bitcoin BTCon Hyperliquid 📈 chartCrypto▼ -2.0%
hist -5.23–+0.91% · other way +5.56% (n=12)
3Solana SOLon Hyperliquid 📈 chartCrypto▼ -1.8%
hist -9.8–+1.52% · other way -1.0% (n=12)
4Gold XAUon Hyperliquid 📈 chartCommodity▼ -1.4%
hist -0.85–-0.35% · other way -0.17% (n=12)
5Hyperliquid (HYPE) HYPEon HyperliquidCrypto▼ -1.3%
model prior · unmeasured
6Ether ETHon Hyperliquid 📈 chartCrypto▼ -1.2%
hist -9.08–+2.16% · other way +4.71% (n=12)
7Coinbase COINon Hyperliquid 📈 chartEquity▼ -1.3%
hist -1.04–+0.34% · other way +18.8% (n=12)
8US dollar (DXY) DXYon Hyperliquid 📈 chartFX▲ +0.8%
hist +0.23–+0.5% · other way +0.7% (n=12)
9EUR/USD EURUSDon Hyperliquid 📈 chartFX▼ -0.7%
hist -0.41–-0.22% · other way -0.53% (n=12)
10Volatility (VIX) VIXon Hyperliquid 📈 chartVol▲ +0.5%
hist -1.14–+0.95% · other way +3.18% (n=12)
1130y Treasury yield DGS30 📈 chartRate▼ -6bp
hist -3.34–-1.46% · other way +14.1% (n=12)
12Financials XLF 📈 chartEquity▼ -0.5%
hist -0.32–+0.17% · other way +0.21% (n=12)
13Turkish lira TRY 📈 chartFX▼ -0.7%
hist -1.75–+0.33% · other way -0.25% (n=12)
14GBP/USD GBPUSDon Hyperliquid 📈 chartFX▼ -0.6%
hist -0.36–-0.2% · other way -0.62% (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): 30y Treasury yield -6bp · Financials -0.5% · Turkish lira -0.7% · 10y Treasury yield -5bp · High-yield credit -0.4% · Indian rupee -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.

August 24, 2015 ETF flash crash 2015-08 Greece first EU/IMF bailout 2010-05 Louvre Accord 1987-02 Iranian Revolution oil shock 1978-12 Gold tops $4,000 and silver spikes past $50 in historic squeeze 2025-10 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 Tesla shares crater on DOGE political backlash and Europe sales collapse 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 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 Weak July 2024 jobs report triggers Sahm-rule growth scare 2024-08 Intel's Q2 earnings trigger its worst single-day crash since 1974 2024-08 Megacap AI-capex doubt selloff 2024-07 Trump 'Taiwan should pay for defense' chip selloff 2024-07 India's Modi loses single-party majority 2024-06 Mexico's Sheinbaum landslide + supermajority scare 2024-06 Wagner Group mutiny against the Kremlin 2023-06 Turkish lira hits record low after Erdogan re-election 2023-05 First Republic Bank seized and sold to JPMorgan 2023-05 Regional-bank panic deepens after Signature seizure 2023-03 Brookfield defaults on LA office towers 2023-02 India Adani-Hindenburg rout 2023-01 TSMC cuts 2023 capex on chip-demand downturn 2023-01 Solana craters toward $8 on FTX/Alameda overhang 2022-12 Offshore yuan hits a record low 2022-11 CoinDesk exposes Alameda's FTT-heavy balance sheet 2022-11 August 2022 hot CPI 2022-09 Powell's hawkish 'pain' speech at Jackson Hole 2022-08 China fires ballistic missiles into Japan's EEZ during Taiwan drills 2022-08 Three Arrows Capital liquidation order 2022-06 Celsius Network freezes withdrawals 2022-06 Netflix subscriber-loss crash 2022-04
AssetHistory saysAbnormal (20d · 5d)HitnConfidencevs cascade
CL CLSHORT-3.1% · 5d -1.3%76%38 0.41✓ matches cascade
SOL SOLSHORT-7.8% · 5d -5.9%69%36 0.30✓ matches cascade
ETH ETHSHORT-7.6% · 5d -5.4%64%36 0.22✓ matches cascade
JPM JPMLONG+0.5% · 5d -0.1% ↺ fades62%39 0.21⚠ differs
XLF XLFLONG+0.3% · 5d -0.1% ↺ fades61%38 0.19⚠ differs
Bitcoin BTCSHORT-3.9% · 5d -3.0%59%37 0.15✓ matches cascade
KRW KRWLONG+0.2% · 5d +0.2%58%38 0.14⚠ differs
SMH SMHLONG+1.4% · 5d -0.2% ↺ fades58%38 0.14⚠ differs
TRY TRYSHORT-1.3% · 5d +1.0% ↺ fades58%38 0.12✓ matches cascade
CNY CNYSHORT-0.3% · 5d -0.1%55%38 0.10✓ matches cascade
Gold XAULONG+0.1% · 5d -0.2% ↺ fades55%38 0.09⚠ differs
EURUSD EURUSDLONG+0.0% · 5d -0.0% ↺ fades55%38 0.09⚠ differs
30y yield DGS30LONG+0bp · 5d +2bp55%40 0.08⚠ differs
INR INRSHORT-0.0% · 5d +0.3% ↺ fades55%38 0.08✓ 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.