The Hebrew word bahal — to be in sudden, overwhelming dismay, to be terrified in an instant — appears in several Psalms in ways that describe the experience of panic. Psalm 6:3 says "My soul is also sore vexed" — the word is bahal. Psalm 31:22 says "I said in my haste, I am cut off from before thine eyes." The word for 'haste' — chaphaz — describes the frantic, panicked state of someone who cannot think clearly. The Psalmist is describing what panic disorder feels like: sudden, overwhelming, disconnecting from rational thought — and bringing it directly to God.
2 Timothy 1:7 gives the theological counter-weight: "For God hath not given us the spirit of fear; but of power, and of love, and of a sound mind." The Greek for 'fear' here — deilia — is cowardly timidity, not the healthy respect of reverence. The 'sound mind' — sophronismos — is literally a mind that is self-controlled, composed. Paul is not claiming Christians will not experience fear. He is identifying that the spirit driving panic is not from God, and that what God gives — power, love, sound-mindedness — is the alternative.
Commentary is from a charismatic Protestant perspective, drawing on KJV text and public-domain sources including Spurgeon, Andrew Murray, and Matthew Henry.