Does Bitcoin survive?
Most probably. You have to remember that after all, Bitcoin is just software.
Maybe some miners will suffer, maybe some will shut down, but most probably that will happen in small steps, leaving no real bad effect on Bitcoin.
While it makes sense to hold money into bitcoin
Most probably some could use Bitcoin as a safe haven to hold (or hide!) money, but at the end I expect the bigger investors withdraw and use that fiat to buy falling businesses. It may make more sense economically. It depends though how volatile will Bitcoin price still be near the start of recession.