How do panic selling affects the market and why does it affects the coins value?
most of them are panicked because they are afraid of their assets increasing their losses even more, they sell to minimize their losses in invest which is a decrease in prices, and that will only worsen coin prices. So if many who sell coin prices will go down and if many who buy coin prices will increase
yes they don't hold their coins and it's like a chain, 1 person panics then another coin holder will follow. if there is no wall then the coin will be destroyed. and dev no matter their coins are destroyed.
The main reason for panic selling is the emotion of fear of losing his investment. To save his investments is the logical desire of any investor.