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It's very hard to assume what gonna happen upcoming months but i don't think government or their work gonna fall apart like you said. But i agree with one thing that btc is not about just hold, it's also about using like a fiat money if we really care about btc. Although still btc is illegal in many country so buying food, gold or silver with btc is not possible for them. But situation like this won't be same all time cause soon or later people will use btc as a fiat money. If i have a chance to buy goods or other things with btc i won't miss that chance for sure. (in my country btc transaction still illegal
)I don't also think why government will fall apart after this although we know the economy on each country is at risk but for sure they have solid plan to rise back again after the big crisis they encounter, but also I agree with you since same in fiat btc need circulation so that the crypto economy will became healthier since we need those thing to gather more attention from group of institution until we reach on legalization.
And expect the fall down since many people securing their fiat since panic buying still everywhere and the pandemic still uncontrollable so might we cannot see the things we expect for now.