An analysis says bitcoin (BTC) is emerging as a key pillar for stabilising the cryptocurrency market in the second quarter. Prices are moving in a limited range, but fund flows and key indicators suggest the market is building a bottom.

CoinDesk, a blockchain media outlet, reported on April 27 that Fidelity Digital Assets, in its second-quarter signal report, assessed the current market as a phase of structural improvement within a correction rather than a simple downturn. The report examined changes in market resilience by analysing risk appetite, investor positioning and cycle trends alongside prices.

Key indicators generally showed improvement. Unrealised profitability suggested investors' profit-and-loss structures are gradually stabilising. Momentum indicators also signalled that sharp downside pressure is easing. Network use holding steady or increasing was interpreted as a sign that real demand remains alive.

Bitcoin in particular stood out again as the asset drawing funds first. Fidelity said bitcoin dominance, which had been falling throughout the second half of 2025, has recently turned higher again based on unrealised profit levels and market dominance indicators. That suggests that as volatility rises, investors shift funds to assets with relatively higher stability and liquidity.

By contrast, ethereum (ETH) and solana (SOL) showed a gap between prices and fundamentals. Prices for both assets failed to secure clear upward momentum, but network activity held up relatively well. That is a sign that underlying demand, such as dapp use, transaction processing and ecosystem activity, is being maintained, allowing an interpretation that long-term fundamentals have not been damaged regardless of short-term prices.

The market environment remains highly uncertain. Global inflation is lasting longer than expected, shaking expectations over the interest-rate path of major central banks. Stock market volatility is also intermittently increasing. Geopolitical tensions and regulatory risks are also acting as factors that limit upward momentum across risk assets.

Against this backdrop, the cryptocurrency market has continued for months in a rangebound pattern without a clear trend. Investors have opted to manage exposure rather than aggressively expand positions, which has limited both trading volume and price volatility.

Even so, the report did not view the current phase only negatively. It said momentum and profitability indicators align with a correction, but the market may also be in the process of shedding overheating and being reshaped into a more stable structure. That is an interpretation that internal resilience is recovering before a price rebound.

Ultimately, the market is in a stretch where two trends are appearing at the same time. Bitcoin is strengthening its safe-asset character as funds concentrate and is raising its dominance. Ethereum and solana are maintaining ecosystem demand based on network use. This suggests the market is not simply preparing for rising prices but has entered a phase of structurally resetting its balance.

Fidelity Digital Assets assessed that, taken together, the signals show the market is still in a recovery process, but structural improvements are already under way. It added that it may take time before this change is sufficiently reflected in prices.

This could also change the criteria used to judge the market going forward. It said basic indicators such as fund concentration, investor positioning and network activity could serve as more important leading signals than short-term price swings.