🏛 Central Banks & Macro risk-off · 1–3 years
A what‑if from the future

What if the yuan breaks 8.0 per dollar in a disorderly slide?

A disorderly CNY slide past 8.0/USD — beyond the 2007 weak extreme — marks a loss of control over the managed float, sparking competitive EM-Asia devaluation and a global risk-off shock.

12%
our model probability
over 1–3 years
prediction markets — wisdom of the crowd
loading live odds…
Empirically anchored 12% · 90% range 4–20% · 40 analogues · measured class china_growth 100% in 3 yr · 3% held back for the unknown
how we built this number — every step
Measured class rate — china_growth ≈2.5597/yr → 100% in 3 yr100%
Analyst prior · editorial share 12% of the class12%
Pooled · weight 87%13%
Crowd — no liquid market
Reserve 3% · no extremizing (×1.0)13%
Published12%

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. A disorderly CNY slide past 8.0/USD — beyond the 2007 weak extreme — marks a loss of control over the managed float, sparking competitive EM-Asia devaluation and a global risk-off shock. The trigger decomposes into signed root‑shocks — US dollar (DXY) ▲ · EM currencies ▼ · China growth ▼ · 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
1Turkish lira TRY 📈 chartFX▼ -1.5%
hist -1.07–-0.5% · other way -0.25% (n=12)
2Indian rupee INR 📈 chartFX▼ -1.3%
hist -0.81–-0.38% · other way -0.09% (n=12)
3MicroStrategy MSTRon Hyperliquid 📈 chartEquity▼ -1.0%
hist -1.19–-0.12% · other way +24.57% (n=12)
4Solana SOLon Hyperliquid 📈 chartCrypto▼ -0.9%
hist -16.93–+1.39% · other way -1.0% (n=12)
5Chinese yuan CNY 📈 chartFX▼ -0.9%
hist -0.7–-0.24% · other way -0.81% (n=12)
6Hyperliquid (HYPE) HYPEon HyperliquidCrypto▼ -0.7%
model prior · unmeasured
7Nasdaq 100 NDXon Hyperliquid 📈 chartIndex▼ -0.7%
hist -1.4–+0.17% · other way -0.29% (n=12)
8Aussie dollar AUD 📈 chartFX▼ -0.6%
hist -0.52–-0.14% · other way -0.91% (n=12)
9Ether ETHon Hyperliquid 📈 chartCrypto▼ -0.6%
hist -11.51–+1.59% · other way +4.71% (n=12)
10Bitcoin BTCon Hyperliquid 📈 chartCrypto▼ -0.6%
hist -4.81–+1.42% · other way +5.56% (n=12)
11Freeport (copper) FCX 📈 chartEquity▼ -0.6%
hist -3.69–+1.15% · other way +1.0% (n=12)
12Copper XCUon Hyperliquid 📈 chartCommodity▼ -0.5%
hist -0.52–-0.06% · other way +2.36% (n=12)
13US dollar (DXY) DXYon Hyperliquid 📈 chartFX▲ +0.5%
hist +0.13–+0.37% · other way +0.7% (n=12)
14Volatility (VIX) VIXon Hyperliquid 📈 chartVol▲ +0.5%
hist -1.24–+0.68% · other way +3.18% (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): Turkish lira -1.5% · Indian rupee -1.3% · Chinese yuan -0.9% · Aussie dollar -0.6% · Freeport (copper) -0.6% · Tech sector -0.4%

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 ASML bookings-miss crash 2024-10 Offshore yuan hits a record low 2022-11 China fires ballistic missiles into Japan's EEZ during Taiwan drills 2022-08 Alibaba upsizes buyback to record $25 billion 2022-03 Kaisa Group offshore default 2021-12 Evergrande debt crisis - global selloff 2021-09 Didi removed from China app stores after NYSE IPO 2021-07 Bitcoin May 2021 crash 2021-05 Chinese yuan breaks 7 per dollar; US names China manipulator 2019-08 Apple cuts revenue guidance on China weakness 2019-01 China stock-market circuit-breaker fiasco 2016-01 August 24, 2015 ETF flash crash 2015-08 Shanghai A-share bubble peak / crash begins 2015-06 October 27, 1997 mini-crash 1997-10 Thai baht float 1997-07 Tiananmen Square crackdown 1989-06 Hong Kong Stock Exchange four-day closure after Black Monday 1987-10 Louvre Accord 1987-02 Iranian Revolution oil shock 1978-12 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 Israel strikes Iran — Operation Rising Lion 2025-06 US and China agree Geneva tariff truce, slashing rates 2025-05 US bars Nvidia H20 AI-chip exports to China 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 DeepSeek shock crushes AI-power utilities Vistra and Constellation 2025-01 Micron's weak FQ2 guidance sparks a sharp December selloff 2024-12 US October 2022 advanced-computing chip rules tighten further 2024-12 October 2024 Iranian ballistic-missile attack on Israel 2024-10 China 'bazooka' stimulus package 2024-09 Gold tops $2,500 for the first time on Fed rate-cut bets 2024-08 China imposes antimony export controls 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
AssetHistory saysAbnormal (20d · 5d)HitnConfidencevs cascade
SOL SOLSHORT-13.2% · 5d -14.9%79%29 0.41✓ matches cascade
ETH ETHSHORT-9.3% · 5d -8.8%74%31 0.37✓ matches cascade
MU MUSHORT-6.3% · 5d -3.6%72%39 0.37✓ matches cascade
CL CLSHORT-2.1% · 5d -1.1%69%34 0.30✓ matches cascade
NVDA NVDASHORT-2.4% · 5d -2.3%67%34 0.25✓ matches cascade
KWEB KWEBSHORT-1.5% · 5d -1.1%62%34 0.24✓ matches cascade
AMD AMDSHORT-4.2% · 5d -1.7%65%39 0.23✓ matches cascade
SPX SPXLONG+1.1% · 5d +0.2%61%40 0.19⚠ differs
COIN COINSHORT-3.7% · 5d -1.8%61%29 0.19✓ matches cascade
Gold XAULONG+1.3% · 5d +0.6%62%34 0.19·
XCU XCUSHORT-0.2% · 5d -1.0%60%34 0.16✓ matches cascade
NDX NDXSHORT-1.0% · 5d -1.3%60%39 0.15✓ matches cascade
Bitcoin BTCSHORT-4.2% · 5d -4.3%60%34 0.15✓ matches cascade
Volatility VIXSHORT-1.4% · 5d -0.0%59%36 0.15⚠ differs

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.