What Is an All-Time-Low?

An all-time low (ATL) refers to the lowest price a cryptocurrency has hit during its trading history. All-time lows are the opposite of all-time highs, the highest price a cryptocurrency has ever reached. While an all-time high is easy to define, an all-time low can be more challenging to pinpoint.

For example, some cryptocurrencies start as bootstrapped versions that trade in liquidity pools. Thus, their all-time low is technically zero since they begin trading from a valuation of zero. Where many cryptocurrencies, like Bitcoin, are mined in a proof-of-work system, some are pre-mined, where early investors get into a coin at lower prices than are available to the public when the token launches. 

Most commonly, analysts look at the lowest valuation a cryptocurrency has reached after a daily close. For bootstrapped coins, this would start from their first day of trading, while pre-mined coins can also trade below their public launch price. Analysts also look at lows during specific time periods, which are not all-time lows in the strict sense. 

What Happens During an All-Time Low?

Cryptocurrencies that reach an all-time low are on a bearish trajectory. An all-time low is caused by significant negative news, and it signals market capitulation and possibly the death of a crypto project. However, depending on the underlying cause for the all-time low, it may also represent an investment opportunity for experienced investors.

For example, an all-time low can also be caused by factors that are not within the control of the coin, such as the macroeconomic situation or industry turmoil. Investors looking to purchase coins around their all-time lows need to carefully analyze whether the project is still developing or whether the all-time low is caused by token holders permanently abandoning the project. Still, generally, an all-time low signals that a cryptocurrency is in serious distress and will more likely than not continue to decrease in value.