The digital assets market entered the second quarter in consolidation mode, but Fidelity Digital Assets said underlying data indicates early signs of stabilization beneath the surface.
In its Q2 2026 Signals Report released on Monday, the crypto trading firm highlighted improving conditions across a number of key metrics, including unrealized profitability, momentum, and network utilization.
Rather than focusing solely on price, the report is presented from a broader perspective of risk, positioning and cycle dynamics across bitcoin. ether (ETH) and solana (SOL).
Bitcoin, the largest cryptocurrency, continues to serve as a primary source of market resilience, with levels of unrealized profits and dominance metrics indicating that capital remains concentrated in the more established and liquid asset during the consolidation phase.
“BTC dominance continues to gradually increase after declining throughout the second half of 2025,” wrote analysts led by Daniel Gray.
The digital asset was trading around $77,000 at press time.
Crypto markets have seen choppy performance in recent months, with bitcoin and other major tokens largely constrained as investors navigate a complex macroeconomic backdrop.
Persistent inflation, shifting expectations for central bank rate cuts and periodic volatility in global stocks have weighed on risk appetite, while ongoing regulatory scrutiny in the United States and abroad has added another layer of uncertainty.
At the same time, conflicts in Eastern Europe and the Middle East as well as trade frictions between major economies have contributed to surges in risk aversion, limiting the sustained rise of digital assets.
At the same time, analysts noted that momentum and profitability indicators are consistent with a correction period, which could lay the foundation for a more stable market structure.
A notable divergence appears between prices and network activity. Analysts have pointed to sustained usage of Ethereum and Solana, suggesting that demand at the protocol level remains intact even as valuations lag.
Taken together, these signals reflect a market still recovering, but with ongoing structural improvements that may not yet be fully reflected in prices, the report said.
Learn more: Bitcoin faces near-term pressure as liquidity tightens, Hilbert Group CIO says
