I remember watching the stock market implode in 2008 and watching the value of my gold holdings collapse just as fast.
Some cash is nice, but even that's turning into crap, and slaves just don't cut it anymore....
The picture was more complex:
1. First, gold rallied 30% from October 2007 to Bear demise (3/2008) while SP500 declined 13%.
2. Then, between Bear and Lehman (or its immediate aftermath), gold declined 35% (from peak) and SP500 declined another 28% (for a total of 41% at the indicated time).
3. Therefore, counting from October 2007, gold was down only 5%, but SP500 was down 41%.
4. From that point, until July 2011, Gold rallied 140% while SP500 only 36%.
Perhaps, you only noticed the period between Bear and Lehman.
A very similar situation is occuring now: gold is rallying, SP500 stalling and declining.
Prediction: If we are going into a serious decline, gold might rally for, maybe, another 10% and then will get smashed with everything else.
TL;DR My take is that IF stock market would decline sharply, then btc would get dragged down as well, at least initially.