> If Tether holders were fleeing, they would be going into other stablecoins like USDC, not BTC.

That's assuming other stablecoins are:

    a) actually backed up by non-risky assets, Quite a stretch.

    b) can easily be exchanged to USD in large quantities

    c) can be purchased with USDT

Neither of these are particularly guaranteed to actually exist.

If I was holding USDT right now (I am not, thank god), my preferred exit route would most definitely be BTC. And in very short order.