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.
I don't think bitcoin will die. As long as there are people using bitcoin, it will never die. Besides, bitcoin is a big help now in our modern society. Since the evolution of technology is fast growing, the bitcoin will still be there. Bitcoin has so much time to improve, and itcwill be the future of crypto currency.