Fidelity Digital Assets sees tentative signs of stabilization in the crypto market, even as prices remain range-bound early in the second quarter.

In its Q2 2026 Signals Report, the firm said underlying conditions are improving, with on-chain metrics and network activity trending higher. Indicators such as unrealized profits, momentum and usage suggest the market is strengthening beneath the surface despite muted price action.

Rather than focusing solely on price movements, the report evaluates broader factors including risk appetite, investor positioning and cycle dynamics across major assets like bitcoin (BTC), ether (ETH) and solana (SOL).

Bitcoin continues to serve as the market’s primary stabilizing force during this consolidation phase. Rising dominance and resilient unrealized profit levels point to capital concentrating in the most liquid and established cryptocurrency.

Analysts led by Daniel Gray noted that bitcoin’s dominance has been gradually increasing after declining through the latter half of 2025. BTC was trading near $77,000 at the time of writing.

Crypto markets have delivered uneven performance in recent months, with major tokens largely stuck in sideways ranges. A challenging macroeconomic backdrop has weighed on sentiment, including persistent inflation, shifting expectations for central bank rate cuts and bouts of volatility in global equity markets. Ongoing regulatory scrutiny has further added to uncertainty.

Geopolitical tensions in Eastern Europe and the Middle East, along with trade frictions among major economies, have also triggered periodic risk-off sentiment, capping sustained upside across digital assets.

Still, Fidelity said current momentum and profitability trends align with a corrective phase that could help lay the groundwork for a more durable and stable market structure.

The report also highlighted a divergence between price action and underlying fundamentals. Ethereum and Solana continue to show consistent network activity, indicating that demand at the protocol level remains intact even as valuations lag.

Taken together, the findings suggest the crypto market remains in a recovery phase, with structural improvements underway that have yet to be fully reflected in prices.