I don't know the full story of how it happens that someone would sell their Bitcoin to treat a person battling illness, but as long as you're able to solve the problem after selling, it's fine. If you're serious about investing, it won't take long before you can get your Bitcoin investment back. Gradually, you'll be able to rebuild your portfolio.But what I would advise is: don't joke with your emergency funds. Always use discretionary income to invest in Bitcoin.
Money cannot bring someone back from the dead, no matter how rich you are, you cannot bring back the dead. So, if you sell your Bitcoin to treat yourself or someone who is sick, you have done nothing wrong, life is more precious than any investment.
If you have more money, you can continue to save or invest money in Bitcoin at any time. However, the life that was lost will never return, that is why it is normal to use your investment for medical or emergencies.
Youre also right about emergency funds. When we don't have emergency funds, we may be forced to sell our investment at a bad time or for a low price. This is why it's important to have an emergency fund apart from your investment funds.
The prior to why we invests is to secure an edge to solve our financial needs in the future but if by any means it is required that we have to disrupt our long term investment plans, so be it as long the most essential need is solved. Life is just one while investment remains available. But in the actual sense, every bitcoin investors should always be backed with savings that can be projected for emergency needs. The amount of funds we invests in bitcoin should be out of discretionary income that even as it is accumulated in values, we always learn to overlook it and don't be in a haste to sell it because after tackling the Short term problems, the future may have it own and when you don't have financial backup in the future, then your stays and every other efforts of the past may seem valueless that is why we should be dedicated with our investment plans because we might need it more ahead than now. The economy system is not smiling anymore so it is better to keep preparing ahead.