Rolex and crypto are increasingly correlated – The Cryptonomist
Prestigious brands, such as Rolex and Patek Philippe, have declined since the start of the crypto bearish trend.
Pre-owned Rolex and Patek Philippe prices are falling, in line with crypto’s decline
Luxury watchestrophy watches in particular, are very fashionable among cryptocurrency traders and HODLers, as are of course all those luxury items that hold value over time.
Over time, we have appreciated how these two markets turn out more and more coherenta link that gets tighter and tighter and follows the currents as much as the value itself.
The crypto market, which was worth 3 trillion dollars until the peaks last November, has fallen with the downtrend and the macro economy to just under $1 trillion, then recovered in recent months.
The secondary market for trophy watches during the same period fell by 50%, before also recovering in the last 20 days.
The prices have not changed. The price of Bitcoin When they peaked last November, a Patek Phillipe Nautilus 5711A was running from $35,000 to $240,000for example.
Since then, this quarter has seen BTC and other crypto assets such as Ethereum drop in value before recovering a bit in recent weeks, the same watch has dropped in value, coming in at $190,000.
Chrono24, in a note reported by Bloomberg, said the offering of trophy watches, such as the Rolex Daytona or the Patek Nautilus 5711A (which went to $190,000 from $240,000 in the first quarter), “is now much broader”.
The correlation last quarter has become stronger
Chrono24 told Bloomberg that the price of a Patek Philippe, or a Rolex, fell sharply again in the last quarterand the used market is full of such watches which were once very fashionable and are sold in large numbers, especially by miners and small and medium-sized investors.
Tim StrackeCo-CEO of Chrono24, explained how this price drop due to mass selling by some investors to compensate for losses has significantly calmed the prices of these assets.
In contrast, other models from brands such as Cartier and Breitling have risen, positioning themselves at the elite end of the market.
The luxury watch market and the crypto market are increasingly going hand in hand. Swiss watchmaker Tag Heuer recently announced that it has given its customers the ability to make crypto payments online in the US through an integration with BitPay.
Another Swiss brand, Franck Muller, recently announced that it will launch a unique Binance NFT collection with limited edition clock.
