A Bitcoin (BTC) can now fetch more on the secondary market than a luxury watch from Rolex and Patek Philippe. Bitcoin is rising as the pandemic boom in watch sales has given way to greater caution amid high interest rates.
According to Bloomberg, the prices of the 50 most traded watches have fallen 42% since their peak in April 2022. Bitcoin fell 4% over the same period, closing April 2022 at $37,792.73. The current price is $36,280.
High supply of tank rolex prices
The price drop is a result of a surge in demand for watches from Rolex, Patek Philippe and Audemars Piguet during the pandemic. Since then, high interest rates and uncertain growth prospects for the US economy have dampened enthusiasm.
Watch price drop | Source: Bloomberg
Price uncertainty for top brands has risen to 12% since August, while the number of used watches on the secondary market has increased by 5%. The price of Bitcoin rose from an average of $27,852.79 in August to around $37,000 in November.
Read more: Crypto vs. Stocks: Where to Put Your Money in 2023
There is also an oversupply in the watch market, with watch trading platforms taking 8% longer to sell watches. Price indices for Rolex and Patek Philippe watches in the secondary market fell by 1.5% and 2.3%, respectively, in October.
Bitcoin (BTC) is better than Rolex and Patek Philippe
The fall in the price of used watches means that their investment potential is decreasing. The market has been weighed down by high interest rates, which have reduced the timepieces’ potential as a stable source of value.
But Pierre Dupreelle, managing partner of Boston Consulting Group, said:
“There have definitely been some landings in 2023, but we see that overall prices have definitely remained much higher than they were before the pandemic. I don’t think it’s the bursting of a bubble. I think as the economy stabilizes, you can see prices stabilizing or maybe rising again.”
However, the outlook is brighter for those who own Bitcoin as the asset has increased compared to last year regardless of interest rates. The asset’s correlation with the stock market has declined significantly since 2022 as its price becomes more dependent on investor sentiment.
Since June, Bitcoin has experienced several bullish catalysts, including the maturation of regulations and the expected approval of exchange-traded funds (ETFs) that directly track its price. Investors expect next year’s halving to further drive the price higher as the event slows the rate at which new Bitcoins come into circulation and keeps the asset deflationary.
Read more: What is Bitcoin Halving?
Do you have anything to say about the Rolex price drop? Patek Philippe is watching the rising price of Bitcoin, or something else? Please write to us or join the discussion on our Telegram channel. You can also see us on TikTok, Facebook or X (Twitter).
Disclaimer
In accordance with Trust Project guidelines, BeInCrypto is committed to unbiased and transparent reporting. The aim of this news article is to provide accurate and up-to-date information. However, readers are advised to independently verify the facts and consult a professional before making any decisions based on this content.
Learn Crypto Trading, Yield Farms, Income strategies and more at CrytoAnswers
https://nov.link/cryptoanswers
Comments are closed.