Panicking at this time will only lead to mistakes, so it's wise to keep calm and think clearly. If you bought at a higher price, it's probably best to hold until the market recovers or it reaches it goes up to your profit margin.
If you bought at a lower price and feel you can't hold any longer, maybe you can sell some or a portion. I wouldn't advise liquidating everything. Consider selling some and holding onto the rest while keeping a close eye on the market.
Market fluctuations like this are normal, with bull runs and bear runs. As a trader, you should be familiar with these cycles, and if you're a Bitcoin holder, you've probably experienced this before.
You are right, we should be careful during this time. This is why there is a fear/greed index, because when people are fearing that is also the same as people having a panic attack, and because of that ,when they are all fearing, it is a great time to buy. If you do that, then you are going to be making more money. Not all the time, sometimes you make profit and sometimes you don't, but in the end you will have more chance.
Panic never makes you any money, but investing during when people are fearing, will make you a lot of money in theory, it should. Panic never makes a dime, and market in panic mode means that everyone is selling when they shouldn't, which could benefit you if you buy when they are selling and when they calm down, they will buy back, and get you richer.