Bitcoin Is Repeating a Terra Collapse Era Setup — But Bullishly

Top stablecoin USDT’s onchain volume just hit record highs, echoing the Terra collapse–era liquidity spikes. But this time, it signals accumulation instead of panic.

Stablecoin Volume Signals a Bitcoin Coil

Tether’s 30-day moving average of crosschain transaction volume—across Ethereum and Tron blockchains—has climbed to an all-time high, showing unprecedented demand for dollar-pegged liquidity in crypto.

On Aug. 22, USDT daily volume spiked to $77.8 billion, the highest since May 2022, when Terra’s collapse triggered mass panic across crypto markets. The key difference: instead of fear-driven exits, today’s surge comes in a relatively calm market, hinting at strategic accumulation.

The surge in USDT activity suggests large players, including whales and institutions, are sitting on stablecoins, waiting for their entry point.

In crypto terms, that’s dry powder. When these wallets fill up, they rarely stay idle for long. Historically, it marks the build-up phase before Bitcoin and other majors see a decisive leg higher.

Macro Tailwinds: Bond Market Stress Fuels Hard Asset Demand

The surge in USDT activity isn’t happening in isolation. It comes against the backdrop of severe stress in global bond markets.

Across the US, Europe, the UK, and Japan, long-term government yields are ripping to multi-decade highs. In the US, the 30-year Treasury is closing in on 5%, while the UK’s long bond has returned to levels not seen since 1998.

Japan’s 30-year benchmark has even reached record territory.

The collapse of G7 bond markets:

Despite aggressive global central bank rate cuts, yields are surging in France, Japan, Germany, Canada, the US, and the UK.

The market is quite literally rejecting central bank interest rate cuts.

How did we end up here? https://t.co/cA7UCGuokD pic.twitter.com/0CndO3fQ5l

— The Kobeissi Letter (@KobeissiLetter) September 2, 2025

Crucially, these rising yields reflect ballooning debt supply and weakening demand for government bonds. In effect, investors are being forced to ask for higher payouts before financing sovereign deficits.

That dynamic is fueling a rotation into hard assets, with gold already validating the shift after soaring above $3,500 to a fresh record high.

Bitcoin is now beginning to follow that playbook, emerging as the higher-beta hedge, more volatile than gold, but historically quicker and more explosive once capital starts flowing in.

Analysts, including Michael Terpin, eye a rebound above $115,000 in September, with rising odds of a Federal Reserve interest rate cut later in the month. Those at Standard Chartered expect BTC price to reach $200,000 by year’s end.