So whenever Elon Musk tweets, we panic sell.
Whenever China says something like they'll stop mining and add some extra official shit to it, we panic sell.
When USA says their investors will need to disclose their crypto holdings over a certain amount, we panic sell.
On every panicking news, we panic sell.
They create enough FUD, and we panic sell.
I know I've used the "panic sell" so many times, but have you, for God's sake, ever imagined with a cool mind that whenever we panic sell during shakeouts in the markets, we are actually giving away our BTC to those big institutions who are willing to snatch it away from us, yeah I mean it, every single drop of BTC seems to be taken away from us and it'll be no longer an average guy's BTC which was Satoshi's vision (don't pull me on this, understand the emotions). So if it goes into the hands of these institutions and governments completely, where will we stand? Nowhere. Why don't we understand that it's all more of an intrigue well thought out to wipe out every single BTC hodler (even the smallest one out there) and take away the control from the hands of common people whom Satoshi Nakamoto left BTC with.
There are several reasons why people panic sell. And there's a little we can do about it because it is still their fund afterall. Maybe we can educate to minimize.
The usual people that tend to panic sell are the begginers and the guillibles. These type of people panic sell because they easily believe the negative news about bitcoin without fact checking or hearing second opinion from the professionals. When Elon Musk tweets, a lot go crazy and sell their assets without analyzing the data first. They would rather believe random information they have seen over the Internet instead of looking at the market trend and history of bitcoin.
Despite this panic selling events, I think it's still quite impossible for bitcoin to be owned by the government. Bitcoin is decentralized and they can't manipulate it as much as they want, hence, there is no point in chasing it. What I think is the most probable is that whales will be gaining more and more as long as people will panic sell. The whales are geniuses. They take advantage of the market volatility which can make them earn more profits in the long run.
But seriously, it is hardly worth saying that in that particular case, it was the sale by such a large player as Tesla that led to such a significant drop in the price of bitcoin, because a lot of factors overlapped there. But of course, such large sales undoubtedly have an impact on the exchange rate price of an asset, because an excessively large amount of an asset on the market can put pressure on the price drop. However, such players want to maximize profits and usually keep this circumstance in mind and try to stretch such transactions as much as possible in time and volume. 
