Acceptance by the government will not prevent panic trading. Even in every other market, a lot of people still trade out of panic. Usually, panic is bound to arise for someone who never had a plan on how they should be going about the market in the first place as what they are particular about is the profit they want to be getting in the short term.

Market will always fluctuate, whales will always want to shake out the weak hands that have these kind of thoughts and in this process, this is the reason why we end up seeing people joining FOMO and panicking when the market starts dropping to start selling at loss.

Panic would not solve anything, if you have made a mistake in the past, accept it, see how you can do better next time, and then utilize the correction to your mistake to rebalance now.