Drawdown
A drawdown is the fall from a high to the lowest point before a new high, measured in percent.
Also known as: max drawdown, peak-to-trough
Drawdown measures how far a coin or portfolio has fallen from its peak. A coin that went from $100 to $40 had a 60% drawdown; the maximum drawdown is the deepest such fall in a period. It is the number that shows what holding through a bad stretch actually felt like.
Drawdowns are harder to recover from than they look: a 50% fall needs a 100% gain to get back, an 80% fall needs 400%. See the drawdown recovery calculator and our study of every big fall in the largest coins.