The cryptocurrency market has been in one of its most bearish phases, as capital outflows continue to dominate, with several assets losing significant value.

Sellers have wiped out over $1.37 trillion in market capitalization over the last 79 days, and losses continue to mount.

The presence of isolated capital, however, has sparked new debates about the potential for a market rebound.

Isolated capital in the market

Global liquidity has risen significantly, reaching $147 trillion according to the latest reading.

The global financial system holds a total amount of money and credit, which investors and institutions can deploy into economic activity and financial markets.

Historically, this has been positive for risk assets such…