TrueUSD, FDUSD hit FUD. Bitcoin says “Thanks.”

Yesterday, we witnessed something unusual on the market - a wave of FUD hitting not just one, but two stablecoins at the same time.

It all started with reports that TrueUSD had a $456 million shortfall in its reserves. The issuer, Techteryx, claimed they were the victim of fraud and took the matter to a Hong Kong court.

Then Justin Sun stepped in, offering financial support to TrueUSD. But instead of stopping there, he pointed the finger at First Digital Trust - the issuer of FDUSD - blaming them for TrueUSD’s troubles. He even went as far as calling FDT "effectively insolvent" and urged users to pull their funds immediately.

This created a rare scenario: uncertainty around the future of both stablecoins at once. And the market’s reaction was telling - Bitcoin jumped from $84K to $87K on the news (before sliding back down after Trump’s tariff announcement).

For years, there’s been debate: what happens to Bitcoin if major stablecoins lose their peg? Some argue that since stablecoins are a key source of liquidity for BTC, their collapse would drag Bitcoin down too. Others believe that in a stablecoin meltdown, Bitcoin would be the "flight to safety" - and actually rise in value.

Yesterday, we got a live demo of that theory. And the result? Bitcoin didn’t flinch. In fact, it thrived.

Interestingly, the rest of the crypto market didn’t follow BTC’s rally. It was only Bitcoin that benefited from the FUD surrounding TrueUSD and FDUSD.

So here’s the takeaway: if stablecoins start wobbling, swapping into Bitcoin might be the smart move.

And just a heads up - rabbit.io offers a “fixed rate” option for exactly these moments, so you get the amount you requested no matter how wild the market gets during a FUD storm.