A leading trading platform claims that the latest crypto-related problems have resulted in an increase in supply of second-hand luxury watches. According to the company, this has led to a drop in prices for sought-after models from major brands such as Patek and Rolex.
High Supply after Crypto Crash Lowers the Resale Values of Swiss Watches like Rolex
This has been noticed by a German online portal that has hundreds of thousands of watches and which has noted that there has been a decline in valuations for crypto assets.
The supply of trophy watches, such as the Rolex Daytona or Patek Nautilus 5711A, “is now much larger,” the Karlsruhe-based Chrono24 said in a statement, quoted by Bloomberg. It explained that the crypto crash is decreasing supply of most sought-after models on the secondary market.
According to the report, the declining prices of most sought-after timepieces indicates that second-hand luxury watches are losing pace. That’s after surging crypto rates before that had led to the birth of a new class of luxury buyers and unprecedented increase in the prices of models from the top brands.
The prices of the most desired watches are falling as these consumers retreat. According to Chrono24 CEO Tim Stracke, this trend is a sign of market consolidation.
According to the executive, trading volume on the site has increased more than 50% in the first half of 2022. This is where private sellers as well as dealers find buyers. While a Patek Philippe Nautilus 571A sells now for $190,000. That’s down from $240,000 the previous quarter, prices have risen for many Breitling models.
The German company also pointed to an increase in demand for almost all models from Omega’s Speedmaster collection, offered as a product of the collaboration with Swatch. Chrono24 anticipates an increase in overall platform sales during the second half.
Both luxury watches and cryptocurrencies have a long history. In May, Swiss watchmaker TAG Heuer said it’s introducing online crypto payments for its customers in the U.S. through an integration with Bitpay. This month, another luxury watch manufacturer from Switzerland, Franck Muller, announced it’s launching an exclusive Binance NFT collection with limited-edition timepieces.
Are you expecting resale values of luxury watches brands’ top models to rise again due to rising crypto valuations. Let us know your thoughts in the comment section.
Image creditShutterstock. Pixabay. Wiki commons. Andersphoto
DisclaimerThis article serves informational purposes. It does not constitute an offer, solicitation, or recommendation of any company, products or services. Bitcoin.com is not a provider of investment, tax, legal or accounting advice. This article does not contain any information, products, or advice that can be used to cause or alleged result in any kind of damage.