Whereas alcohol does not directly cause panic attacks, it can trigger them. Alcohol increases anxiety levels, which can lead to panic attacks. A panic attack occurs when the body's fight or flight response is activated without a threat. Alcohol disrupts the balance of chemicals in our brains. It slows everything way down. Our brains will then attempt to bring balance back to our brains by ramping up excitatory neurotransmitters. As the alcohol wears off, we are left with an overstimulated nervous system which can lead to intense feelings of anxiety as well as panic attacks.