Why do people sell their Bitcoin due to fear of the current drop in price. Do They feel the price will drop further and never go up again ?
I feel before anyone invests on Bitcoin they should get a proper understanding of how the Bitcoin market operates. Because if an individual has good understanding they will know that the rise and fall in price of Bitcoin is normal so there won't be a need to panic rather see it as an opportunity to accumulate as much as possible in anticipation for a rise in price.
What you need to understand is this. The number of people that trade Bitcoin every day outnumber the number of people that are holding Bitcoin and whenever there is fear, uncertainty and fud in the market, every trader run to close their position to avoid losses, they don't just want to encounter any losses on their positions that's why you see many selling their Bitcoin and that has nothing to do with people thatbare holding their Bitcoin, it's the same trader that move the price of Bitcoin.
Though there are people that are not traders, they are similar holders as institutional but they don't trade Bitcoin, what they trade is ETF or hold Bitcoin ETF, if the people that are holding ETF continue to sell their ETF, the platform that offer that ETF has to sell equivalent amount of Bitcoin to cover every ETF sold, this is why you see institutional investors like Blackrock sell junks of Bitcoin in some weeks when Bitcoin is dumping, it's no one fault that they are selling.