I find it difficult to comprehend everything you have said here but if i may get you correctly you are trying to say that one can invest his emergency fund which is a very wrong way to invest, if you use up your emergency funds to invest then when you have money matters that requires urgency how will you get money to attend to it, are you going to sell part of your holding to sort it out? it is totally a very wrong idea to invest your emergency funds because it must remain in fiat so that anything money issues that requires immediate attention like health issues, you will use that money that you have set aside in case of urgency to manage such situation. Never you go with the idea of investing your emergency funds along if not you will end up selling your bitcoins too soon when urgent needs arise.
The two points you have highlighted are indeed accurate. In fact, our emergency fund should not be used for any investment purposes. When the emergency fund is used for investment, if we later need money for an emergency and do not have it in hand, we will have to invest and sell the bitcoins that were in the holding. For this reason, I also never use the emergency fund for investment as it is best to reserve it for unexpected emergencies that may arise in our daily lives.
Many people decide to invest from their emergency fund. The reason for this seems to me to be that the emergency fund remains as a reserve for years. It is seen that many people have a regular income flow. They have been investing for 2-3 years and have never touched the emergency fund for any reason. That is why many people decide to invest from that money. But in fact, emergency moments never arise frequently. That is why it is seen that emergency funds remain unused for many years. Many times, it is seen that the price of Bitcoin decreases relatively a lot, then basically investors think of buying a large amount of Bitcoin by taking money from the emergency fund, but it turns out that he bought Bitcoin with the entire money from the emergency fund, but just a few days later he faced a very big financial problem, then he will not be able to raise money to solve that problem and he will be forced to sell Bitcoin again. Therefore, one should never invest money from an emergency fund, as this may cause problems for long-term investors in the future.