This is what makes me lose faith in bitcoin. People are too fickle and will just start selling their coins as soon as they get a whiff of bad news and of course this has a knock on effect and sends everyone pannicking.
It's always been this way and until it has widespread utility that insulates it to an extent it always will be. Most people involved aren't hardened investors and are prone to running around in little circles squealing at the slightest provocation.