Actually your kind of right about that. Think about it, what happens during a bear market? People trade their crypto for fiat and/or stablecoins. So in other words, compared to regular crypto there was more demand for Tether. The supply for it remained relatively flat during the last bear market while the marketcap for the whole cryptoverse went down. It even had a brief moment when it traded around 1.20 (according to Coingecko).

So the demand for stability does increase in relative terms during those periods. Check the logarithmic chart for its marketcap.