I don't think 8% for a drop is very major with bitcoin, most investors probably expect it by now...
Most investor, and not all investors
Crypto investors are not all people who have a lot of money
How $500 drop can be characterized at all as some kind of deep decline? This is something quite normal for four-digit number price, we are not in 2016 when such drop (in fiat value) would be truly dramatic. Why to wait next week or next day when price is back to $9500, as if that means something too much if we look at the overall picture.
I believe that 8% or $500 for a drop will not be much worried for traders who have a lot of money to trade. But for people who have a little money, that will make them afraid, and they will think or research more about what they need to do. For me, $ 500 is a lot of money, and if bitcoin price is down from $9,900 to $9,300-$9,400, that means for me. The situation now is different than in 2016, especially we are still at the pandemic, and many people are trying to survive.