Bitcoin held its $58,000 price level throughout the European morning before a U.S. inflation report due at 8:30 ET (12:30 UTC). Following a dip toward $57,000 at about 3:30 UTC, BTC is sitting around $58,400 at the time of writing, down 0.34% in the last 24 hours. The CoinDesk 20 Index, which offers a measurement of the broader digital asset market, has risen around 0.2%, suggesting traders are sitting on their hands waiting for the CPI report, which will offer the latest indication on the prospect of a cut to interest rates.

The U.S. CPI data is expected to show the cost of living rose 0.1% in June after remaining flat in May, leading to a 3.1% rise year over year. If the figure matches estimates, it would confirm more progress toward the Fed's 2% inflation target and set the stage for the bank to begin a much-anticipated rate cut cycle this year. Increased prospects of interest-rate cuts will likely bode well for risk assets, including bitcoin, helping the leading cryptocurrency extend its price recovery from the lows seen earlier this month. CoinDesk data show that the recovery has stalled, with buyers struggling to establish a foothold above $59,000.

The amount of ETH staked is nearing a record high as the prospect of a spot ether ETF in the U.S. comes closer to reality. "The total number of staked ETH has continued to increase and sits near its all-time high as it stands at 33.3 million ETH or 27.7% of the total supply," Julio Moreno, CryptoQuant's head of research, wrote in a note shared with CoinDesk. The increasing supply of ether is a sign it has returned to being an inflationary asset, undermining its capability to act as a store of value over time. There are ways to counter this such as staking, which locks ether for a fixed period of time, and burning – or permanently removing from circulation – a portion of the transaction fees paid by users.

Trading firm Presto Labs is suggesting clients bet on bitcoin (BTC) strength and against bitcoin cash (BCH) in a market-neutral trade to profit from the Mt. Gox distributions.

Over $73 million worth of BCH is set to be handed out to traders in the coming months, compared with $9 billion of BTC, as part of repayments to creditors of the defunct crypto exchange.

"This can create a shift in supply/demand dynamics in BTC and BCH during this 4-month period, potentially opening up a pair trading opportunity," Presto market analysts led by Peter Chung told CoinDesk in a note Wednesday.

"Our analysis shows that the selling pressure for BCH will be four times larger than for BTC - i.e. 24% of the daily trading value for BCH vs. 6% of the daily trading value for BTC. Long BTC perpetuals paired with short BCH perpetuals is the most efficient market-neutral way to express this view, barring funding rate risk."

- Omkar Godbole