You mean to say that if BTC had higher velocity (used more), it would be ...cheaper?
Well, yes, but depends on what "used more" is supposed to mean.
The money velocity equation is P = V × T / N where P is the unit price (USD/BTC), V is the volume of payments using that currency (USD/day), T is the mean time between two payments with the same unit (days), and N is the number of units in circulation (BTC). It is not even economics, but just basic algebra, from the definitions of those quantities.
If there was no hoarding, N would be 14 million (all coins in existence), and T may be perhaps 14 days (wild guess). Hoarding requires changes those numbers.
One may (1) exclude from consideration the coins that are being hoarded. Then T is still 14 days, but N is only a fraction of 14 million.
Or one may (2) include the hoarded coins. Then N is 14 million, but T would be 1000 days or more (since most coins have been held for years without use).
The expression "bitcoin gets used more" could mean that more people are using bitcoin and/or are spending more; that is, a bigger V. Then the price would go up.
Or it could mean that some of the hoarded coins are put back in circulation; that is, N gets bigger (approach 1) or T gets smaller (approach 2). Then the price will go down.