The size of your emergency funds will determine the level of problem or emergencies that it can solve. You can't have $500 in your emergency funds account and expect it to solve a problem of $1000. It is wise for an investor to continually add to their emergency funds account as they keep getting resources. It is simple logic, it doesn't have anything to do with believe or whatsoever.
Your emergency fund is proportional with total money you have. Assume you have only $1,000 totally, you can not assign an emergency fund with $1,000 or 10,000 but it is possible to have an emergency fund at $100,000 if your total wealth is several billions of dollar.
If you have plan to add up more money to your emergency fund, it's good and you also have to be clear that how much is acceptable for your emergency fund and when you reach that point, you can feel safe enough and reduce severe need of adding more money to that fund. It's good if you can add more money to it but after that safe point, it's not terrible if you won't add more money for it.
Living without money for emergency fund is bad for everyone especially people who are ready to spend money for luxurious things and don't mind to build up their emergency fund.
We all know how the industry work, if you invest everything you have in a particular project and the project is not growing profit the way you want, I guess you know what will happen to your capital you invested in that project. The emergency money is part of the money you have in your account, but the amount of money you invested in that project is your capital which is allow for investors to invest their capital in a profitable project, but it should not be all the money they have in their account.
If you want to sell your BTC to earn profit from the market, make sure you create emergency money from the money you make from the bull run because it will help you to solve some financial crisis that may arise in the future, which is the purpose of having emergency money as an investor.