Many people investing are all or nothing.
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Most that are doing these are newbies who want to maximize their profits, and they believe that going all in on one investment is the way.
Kind of like "YOLO" investment TBH, and there's nothing wrong with it especially when you just focus on Bitcoin, but I believe that diversifying your money is more efficient, and it also lessens your risk of losing all of your money.
Most of the investors who are panicking are newbies who don't know what to do, and just panic when they see their portfolio down 10% or even more. Let them experience the bad days of crypto, and from there, they will adjust unto it. I also experienced panicking when I'm starting to invest with cryptocurrency. I also experienced selling at a loss because my emotions got me. I also experienced having losses because of my wrong decisions, and until now I still experience losses, but minimal already.
At the end of the day, investors will learn as they experience everything. They will learn how to adjust to things as they experience it. Panicking especially for newbies are kind of common.