Yes, this is a complete collapse. Even the US stocks are falling. Many people wonder if the financial crisis is coming. But I think this is ridiculous. We need to be calm. If the stock market collapses, it is very normal.
Bitcoin is down 40% in a week - the stock market is down 5%. Do you understand the difference?
that's because bitcoin is a high risk financial product and stocks are low risk. Or better put, stocks are high risk, bitcoin is super-uber-mega-high risk. The point is, when there is uncertaintly over a crisis, all asset prices go down (except bonds which are tied to the interest rates in the opposite direction), in the order of risk. The higher the risk the more likely you are to get out of it. The same thing happened to alt coins, which took a much bigger hit then BTC because they are of even higher risk.
So yes, if stocks go down, so will bitcoin. Not saying that this is what brings BTC down right now, but it certainly contributes.