One sector of the market simply follows the other sector, Watch industry drop following the crypto market downturn is yet another example.
Cryptocurrency market had witnessed a sharp downturn after a series of instances. This decline had initially affected crypto assets prices which saw massive drops. However, cryptocurrencies were not only ones to be available on discount. Prices of many luxury watches have also seen significant drop due to the cryptomarket plunge.
Chrono24—a German based online platform enlists thousands of watches—has noted that cryptocurrencies’ price decline made a direct impact on the value of luxury timepieces be it Rolex, Patek Phillippe and several others. Watch selling company said that some luxury pieces called trophy watches like Rolex Daytona or Patek Nautilus 5711A have seen growth in their supply.
According to the company, the recent collapse in the crypto market made the supply of such demanded watch pieces easy to resell. This decline in watch prices can be seen as evidence of the beginning of luxury watches’ second-hand market losing their ground, report says. It added that while crypto assets were trading on their highs, this also made the luxury watch segment experiencing more buyers.
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Tim Stracker—co-CEO Chrono24—citing this pattern stated that these customers who entered the space during the high time are now turning back. This made the prices of once most popular watches experiencing heavy blows and falling down closer to other products.
The trading volume of these products on the site, in the meantime, have seen a massive jump of more than 50% since the start of this year. Stracker cited that branded pieces like Patek Philippe Nautilus 5711A have seen a drop from their price of 240K USD in Q1 of 2022 to current price of 190K USD. However, models of several comp;anies like Cartier and Breitling have seen a surge in their prices.
One more instance the company shared was the surge in demand for many models from the Speedmaster collection of Omega. These products were offered in collaboration with Swatch. The company expects an increase in the overall sale during the second half of this year.
Source: https://www.thecoinrepublic.com/2022/07/31/crypto-crash-brings-the-right-time-to-buy-luxury-timepieces-rolex-and-patek/