Here is what will happen during recession to bitcoin prices:
1) Big companies will also have lack of funds as they will less number of prospects or work available. As a result, they will be forced to sell their assets to pay for the running expenses. If they have bitcoin funds, they will have to sell those.
2) A lot of people will loose jobs. Since these people will have no source of monthly income to pay for rent and food, they will have use the savings. Once bank deposits are spent, they will have to sell crypto holdings.
All this will increase the supply and reduce the demand of bitcoins.
This. Anyone in distress (and this includes institutional investors facing margin calls or withdrawal of funds) will be sellers. However, there will be a few buyers at rock bottom prices.
The old school hodlers will continue to hodl.