I think that's normal for the people to panic sell their holding in bitcoin or any other digital coins. Some of us are shocked when the price of the bitcoin adn other cojns drastically changes and going down.
For the situation, many people can't go outside their houses, and many can't even go to work. So, I think they're selling their bitcoin to fiat for them to have their money to be use.
Some of my friends who are professional trader on Binance and Bittrex platform also exchanged their BTC at a lowest price. I asked them why they sold it at such a loss, they replied that they thought coronavirus will badly hit the crypto market like the stock market. So, there are many people who thought that way and sold their BTC at cheapest price. I think this is the main reason for bitcoins price collapsed.
Panic sell is inevitable specially when theres a global crisis thats currently happening and even how experienced you are in the field of trading and investment it cant really be avoided for us not to panic.
We are just humans that do have feelings or emotions that do normally react into situations like this and would have those second thoughts of selling out for your survival or thinking of cutting loss.
We cant really just say that corona isnt the reason why yet we have seen on how it impacts traditional markets that we've known and to presume that all things would be on domino effect.
Good thing here is that we do saw that crypto market is starting to climb up again.