Could something like this happen to Bitcoin?
In other words, are people starting to want to save their BTC coins so much that their value is lost?
This could happen to Bitcoin, and I believe we need to distinguish between bad money and good money.
For me, Bitcoin is the good money, while fiat is the bad money. Why? As stated in "Gresham's Law," bad currency tends to drive good currency out of the market. When we refer to the market, it could mean investment, which means Bitcoin gets pushed out so people can use it primarily as a store of value, while fiat is used for daily transactions.
However, this doesn’t mean Bitcoin will become obsolete or lose its value. Just like gold, it’s not used for daily transactions, but its value appreciates over time.