I think my friend has a bad investment plan

My best friend and I are both 21 and graduating college this spring.

I have 4k in my bank and 9k in an S&P index. I’ll be starting a new job in the summer making 85k a year with a 10k sign on.

I approximate my friend has around 1k in the bank and 5k in an S&P index. He’ll be starting law school in the fall.

He wants to stop investing incrementally in the index and start investing in bearish crypto. He figures that he’s better off harvesting from those investments to pay his loans and rent easier.

I don’t think I’m wrong in wanting to sway him towards keeping his incremental investments safe. What’s wrong with his plan? He says he needs to do something different from me because our immediate futures are different.