EIP 1559 During a Market Crash

There's a lot of hype with Ethereum potentially becoming inflationary when the network is congested but I want to question the price mechanics of this

If ETH becomes more scarce during higher utilisation, it puts an additional strain on supply which pushes the price upwards. But if utilisation falls, ETH becomes more deflationary. This increases supply whilst the price of ETH is falling, which pushes the price down further

Is this by design? It sounds like this mechanism increases the volatility of the price