People are selling in panic because they are not prepared for this if they are new and often they spending money they can't afford to lose. They think about profit and don't considering the fact that price can go down.
I agree with you, because many people think that cryptocurrency can provide a big profit and make them rich quickly, but don't think or know that investing in cryptocurrency has a big risk, so when the market starts to correct, many people will panic and sell cryptocurrency that they have, even though if they hold, then of course the price can increase again (if he invest in a good cryptocurrency), therefore I always recommend to investing in cryptocurrency that are in the top 100 on coinmarketcap (safe and profitable) and never do a panic sell.