What a drawdown shows
A drawdown is the percentage fall from the highest price reached so far. At a new all-time high the drawdown is 0%. If Bitcoin hit $100,000 and now trades at $80,000, the drawdown is −20%.
Bitcoin’s history of deep drawdowns
Bitcoin bear markets have taken the price 75–85% below the previous peak, while bull markets usually include several 20–35% corrections. Looking at drawdowns puts today’s move in context: a 15% dip feels big, but it is normal for Bitcoin.