I don't know why people got panic so easily. People are currently dumping massive coins in the market because of China's action to regulate Bitcoin. What do you think people should do instead of dumping their coins just like that in the market that lead to damage the value of bitcoin?
It's a bit hard to tell who exactly is dumping Bitcoin, but whales and traders are usually the first to do so, and only after them come investors aka hodlers. So, maybe it's just some crazy speculation and manipulation and true hodlers haven't dumped yet. After all, there's no good reason to sell Bitcoin, it's pretty natural that some authoritarian government comes closer to banning Bitcoin, they are the same guys who banned Google and Wikipedia. The example of real panic and dumping would be if there was some bug in Bitcoin, or some developed countries like the U.S. or Germany has banned it.