Practically, Bitcoin isn't isolated from the traditional banking system because its price is supported by USD bank liquidity making its trade as a speculative asset rather than a currency.
You can send bitcoin to anyone at anytime. If bitcoin is not adopted like fiat, it is still an asset that it's value is increasing and you can send it to anyone. It is a currency.
Satoshi Natamoto envisioned Bitcoin as an alternative to traditional fiat currencies. If Bitcoin had been trading on its core value proposition - the ability to be your own bank - then Bitcoin would have rallied with rising bank uncertainty
And it is. There are many companies that you use use bitcoin as payment and some other companies are working on that. With bitcoin on noncustodial wallet, you are still your own bank.
After all, Bitcoin network suffers from scalability issues and high transaction fees, leading many to believe that Bitcoin is more of a store of value than an alternative form of cash.
The scalability issue is not the reason people sell bitcoin bas a store of value, it is becusse after long period of time, its price do not fall below the previous price.