WHAT’S GOING ON WITH THE PRICE OF BITCOIN AND LUXURY BRAND WATCHES?
Recently the collapse in the cryptocurrency world is easing the supply of some of the most notable high-end luxury brand watches. The current swoon in the crypto valuations has a direct impact on the prices of LUXURY BRAND WATCHES like Patek Philippe & Rolex. The price decline of some of the most sought-after watches post the crypto downfalls is a clear indication that there is a clear correlation between the luxury brand watches market and CRYPTOCURRENCY. In this article, I have shared some actual reasons behind this situation.
HOW DOES CRYPTOCURRENCY AFFECT THE HIGH-END WATCH MARKET?
This year is not quite favorable for people who have invested in BITCOIN as there has been a huge crypto crash in the last few months. There has been a lot of analysis around as to why it has and how this fall has affected different parts of the economy. One such industry that is affected by the downfall is the second-hand luxury watch industry. But how? Well, the answer is pretty simple. People, who have been investing in crypto for the last few years, have gained a lot of profit overnight. Naturally, when you earn a huge amount overnight, your tendency to buy expensive stuff will also increase. This is what happened here as well. The surging valuations for cryptocurrency had developed a new class of buyers who are willing to pay high prices for these limited edition watches. Therefore the price range of these limited edition models of brands like Audemars Piguet and Rolex has increased significantly.
Post the downfall in the crypto market, these same buyers who were ready to pay overhyped prices for these branded luxury watches are no more in financial status to enjoy such high-priced watches. As a result of all these, the supply of the most sought-after branded luxury watches in the second-hand market has increased significantly. The brands are putting less pressure on the prices for their limited edition models.
WHY IS THERE AN INFLUX OF WATCHES AVAILABLE NOW ON THE MARKET?
As mentioned above, the latest victim of crypto downfall is the luxury watch market. Due to the overall downfall of the sales which were mostly favored by high-rolling crypto investors, the sudden influx of watches in the industry is visible these days. The ‘crypto winter’ has led the market’s overall value to shrinking from three trillion dollars to almost less than a trillion dollars.
With fewer potential buyers for such over-priced watches, brands like Rolex, Audemars Piguet and Patek Philippe have increased the availability of their most sought-after watches. This entire scenario is leading to the influx of watches available now on the market.
CONCLUSION
Cryptocurrency is one of the most preferred financial investments these days by modern investors due to several reasons. Therefore if this market goes through any downfall it will naturally affect several other markets and luxury branded watches are no exception. I hope through this article I have cleared out the correlation between the prices of bitcoin & luxury brand watches.