I think this is just a price correction. Selling or holding bitcoins is all about their own behavior. I don't think this is a stupid decision. Everyone's psychological price is different. But the future of Bitcoin is not just that.
I think the people who invested there money in bitcoin is not a fool rather there wise enough to double the money they have. The capital you've invest in bitcoin will be triple or multiple if you just learn how to wait. It a matters in holding when the price is low and exchange it when the price is high. Patience is the key in bitcoin there's no need to rush.
Investing in bitcoin is not an act of foolishness rather a act of bravery. I believe that it takes a lot of courage in order for you to decide whether you gonna involve in bitcoin or not. It's a big decision to make in your part because it's too risky. On the other hand I won't agree to tell that it's foolish to invest in here because there's a chance to get rich so it's worth a shot.