Drawdown
Drawdown is the maximum loss recorded by an asset or portfolio from its peak value to a subsequent low before a new recovery. It is generally expressed as a percentage of the peak.
It is an indicator used to assess the risk and volatility of an asset or a strategy: a high drawdown indicates wider swings. The concept applies to any financial instrument, including crypto-assets, which can record very marked drawdowns during bear-market phases. It is historical data and not an indication of future behaviour.
Disclaimer: This entry is for information purposes only and does not constitute investment advice, a recommendation or a solicitation to invest.