They panic because they don't have enough knowledge about crypto so they wouldn't know how to deal with the market and that's actually normal for newbies. To be honest, all of us have committed mistakes in the beginning but it's just how we learn from it that's important. We couldn't be pros in the beginning but we could learn how to handle our emotions as we cope up with the changes in the market.
It's normal for some beginners but sometimes this can affect everything and from them it can be just a habit when there is a market change, surely this panic can lead to misguided and in the end just follow the hype that has been discarded, so I think panic is not just someone beginners who don't know the basics but others will also have an impact because they like to forget the same changes before.
The important thing is how to deal with staying calm in these changing market conditions, this is only a transition at the beginning but at the end you can see what happens about the dump, you can judge later.