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.
That was it. When Bear imploded things really went weird for a bit. And yes having some gold and silver was nice, it was tangible and gave me some confidence. Which is why I didn't panic sell the stocks and instead bought a fair bit at a discount with the cash. Which did well.
And 2008 was a big part of the reason why I liked bitcoin so much in the beginning....
Answer might be sell gold now (and take the cap gain hits) and have cash at the ready for the big fire sales. Question is will bitcoin be on sale, or will it be the thing everyone is begging to have?