Big Drop

What it means: A major devaluation where an asset loses half its value from a recent local high within a short window (usually days to weeks).

In plain terms: Your money has been cut in half.

Example: A memecoin losing 50% of its value after the initial "hype" phase ends.

• Bonds: Indicates a catastrophic collapse or total bankruptcy of the issuer.
• Equities: Occurs during deep recessions or individual company scandals.
• Crypto: Part of a normal market cycle; most assets drop 50-90% during every bear market.

How to use it: A 50% drop is a "regime change" signal. It’s time to re-evaluate if the project is still viable or if it’s time to harvest tax losses.