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.
Due to lack of regulations, many potential investors are shying away from the cryptocurrency. There exist very few bitcoin holders and bitcoin in circulation as of now but with time bitcoin might replace paper money and plastic money. Thus, only time will reveal the future of bitcoin markets.
yeah its the future who will decide what will happen far behind but being optimistic I would love to see that the existence will continue and more success
will follow as of now its already gathering attention from the main stream and if more people finds out about this big opportunities many will follow and
will be supported by most investors and businessman.