How would cryptocurrency react in a financial collapse? ( Discussion )

So I have always wondered how would cryptocurrency react in the event of a recession or a depression. Considering how the last recession was in 2008 and the economy tanked. I'm wondering how this new age of digital money would react in a catastrophic event like this. I could see it going two ways.One in which it also collapses and another where it thrives and reaches new highs because its' a separate system from the economy.

Collapse of Cryptocurrency
When people begin losing their assets in everything else like stocks, real estate, bonds etc it's in human nature to panic. So I believe people will sell their cryptocurrency to even out their losses or to cash out because of fear of loss. This will result in a major price drop in the cryptocurrency because of the perceived value going down which could be good because they will go on sale and financial collapses are amazing for getting to a wealthy position.

Cryptocurrency Thriving
People will begin to realize the instability of having government-backed currency and allocate everything to cryptocurrency where it's decentralized and separate from the usual government cycles. there could be a massive influx of new people trying to put their money in a safe decentralized system where their money could grow and be safe from inflation and theft.

So now comes the discussion part how do you guys think it will react in a recession or collapse, considering we are on the 9 -year mark in the USA what do you think will happen in the next economic event. My knowledge is a bit limited in economics but I believe this could be an interesting discussion. Please let me know what you guys think will occur. Love structured debate. :)