Reducing or eliminating debt and improving quality of life are perfect reasons to reduce a position in any asset! I've only been in crypto/nft's for the past year but have been investing in traditional assets for at least 25 years.
a few years ago our house flooded. we were insured but it was going to take a while for all of the insurance and mortgage company bureaucracy to get our insurance payment. Obviously, I wanted to get our house remediated and repaired and get my family back in. I've always hated selling assets unless the market situation was the one I was waiting for but in this case, I was fine selling some. The assets are there for our safety and security. So, whether that time is now or later, if it will help you sleep at night, even if it's a great asset, then sell. And sleep without regret. If you just want to buy something else - then fight the urge and hold on to good assets!
Great point. We had a flood in our basement too. I feel your pain. I think we all just wish things were moving a little faster right now.