Polymarket users believe that there is a 55% chance of the U.S. Federal Reserve implementing an emergency rate cut.

Earlier today, the Japanese stock market endured its worst crash since 1987, with Japan’s flagship Nikkei 225 index collapsing by more than 12%.

This came after the Bank of Japan made a hawkish turn, raising the key interest rate and strengthening the yen.

South Korean stocks have also suffered their worst plunge since 2008.

U.S. stocks are also under severe bearish pressure. The S&P 500 index opened 4.2% lower. Meanwhile, the tech-heavy Nasdaq 100 index has plunged by more than 6%. The shares of tech giant Microsoft have shed 4.6%, while Tesla is down as much as 12%.

During a recent appearance on CNBC, Wharton’s Jeremy Siegel advocated for a 75-basis point emergency rate cut. He believes that it should be followed by another rate cut of the same size in September.

For now, such a scenario seems to be unlikely. The markets are currently pricing in only a 16% chance of 75 basis points worth of cuts before September.

“At the end of the day you are long excess liquidity and actually short equity volatility. That’s your bet if you can live with numerous 50-70% drawdowns,” CNBC contributor Lawrence McDonald said.

Earlier today, the Bitcoin price collapsed to an intraday low of $49,577. The largest cryptocurrency is currently trading slightly above the $52,000 level, with rate cut discussions slightly improving sentiment. Still, Bitcoin is down as much as 14% over the past 24 hours.

Unlike gold, it has failed to act as a hedge against global market volatility.