A record high or all-time high (ATH) is the highest historical price level reached by a (crypto)asset, security, commodity, or index during trading.
All-time record highs typically represent significant price news for companies and markets-investors may be enticed to purchase assets, believing the underlying asset will continue to perform well.
The record high is measured from when the instrument first starts trading and updates whenever the last record high is exceeded. The values for record highs are usually nominal, which means they do not account for inflation.
Investors employing a more contrarian strategy may look at record highs as an indicator that an asset price will decrease, presenting an opportunity for shorts.
Many investors will sell out of a “fear of heights,” especially after repeated record highs, if a stock starts edging upward into uncharted territory.
Some economists say this is because record highs feel and sound unnatural to investors, even though achieving a record high can be viewed simply as an example of a market or security doing exactly what it is supposed to do, as long as the government keeps printing money and the economy keeps growing.
Price increases don’t always go up in a straight line, and overall, prices go up more than down, so when someone sells at a record high, the odds are not in their favor.