Crypto experiences a decline at the start of August, almost wiping out its July advance.

On the first day of August, economic data caused investor concerns about the economy, leading them to sell off their risk assets, including cryptocurrencies.

According to Coin Metrics, the price of fell 5% to $3,099.10, which was the last time it was lower by more than 3.7% at $63,144.00.

Crypto stocks tumbled 7% and lost 5.5%.

On Thursday, disappointing data fueled investor concerns about a possible U.S. recession, just a day after the Federal Reserve decided to keep interest rates unchanged. The July manufacturing activity fell 1.7 percentage points from June, and first-time filings for unemployment insurance were above the estimate. Additionally, announced layoffs last month were the highest for July in more than two decades.

In August, Bitcoin is expected to experience volatile trading, as it typically does during this slow month for cryptocurrencies and other risk assets. Bitcoin's 5.04% gain from July was mostly wiped out by Thursday's losses.

Since March, the flagship cryptocurrency has fluctuated between $55,000 and $70,000. Despite reaching an all-time high of $73,000, it has struggled to maintain that peak.

Despite a decline in recent months, Bitcoin remains up more than 48% for the year. Many investors anticipate that it will surpass its previous record high in the second half.