Investors are afraid that cryptocurrencies will no longer be decentralized, because of the worldwide regulations that governments will come with very soon. Cryptocurrencies will be taxed and centralized and that is scary to most investors who prefer decentralized currencies.
If your position comes to be ascertained. I believe everything will come back to normal whether regulation or not. People who are withdrawing there bitcoin investment would come back and invest. Bitcoin can only go down when blockchain is no longer relevant to crypto currency and wallet codification.
They just panic and panic will not last longer because after new news comes and people will comeback to normal.
Its same like people emotion and want to fight somebody, after some time they will be calm again and realize that investing in bitcoin is yet worth.