If the current situation persists for too long, then I believe yes... Bitcoin will be damaged, and the small Bitcoin holders will get out of the boat first, not before paying a premium for their transaction fee to fiat, of course.
Bitcoin will get damage only, but it doesn't mean it will gonna die soon. It will only be wounded but not long life even there is a few bitcoin holders will get out of the boat, there will be still upcoming new people in bitcoin community. So bitcoin will gonna die soon
