Yes, the panic seems strange to me too. Especially because it seems partly FUD innitiated. Yet, like I wrote in a follow up post today: It is hard to argue with panic.

And yes exchange from crypto to fiat can give quite a loss, or a gain on the banks part... The panic selling is a strange phenomena, maybe because the concept of cryptos is fresh and new. And now they come cheap.

In it for the long-term and expecting they will indeed move back up again.