Some people panic for several reasons and one of them is because of the drop in Bitcoin price. When the price of Bitcoin drops, the price of altcoins is also affected and this makes many people panic selling even though they are aware that they are losing. But if we are planning to invest long term, then we will realize that price movements are very volatile
People panic for one reason - when they don't know what to do. Imagine you have a disaster plan, will you panic? No.
Only if things don't go according to plan. Most people don't have any plans for crypto at all.