Crypto Crash is Beginning to Affect the Luxury Watch Market
It hasn’t affected all watch brands the same way, however.
The year 2022 has not particularly been great for cryptocurrency enthusiasts with significant investments. Over the last few months, cryptocurrencies have undergone a major crash and it has already been reported widely enough. However, it looks like the crash is now beginning to affect the luxury watch market.
Not only that, but analysts have started noticing the effects of the crypto crash on other industries as well. Some of the effects were precited easily. However, others were more like a surprise. Since the prices of cryptocurrencies have dropped following the crypto crash, the activity has surged on the secondary luxury watch market.
The watch market
Particularly, it has been reported that Patek Philippe and Rolex are among some companies that have experienced increased watch market activity. It looks like people who had invested in both the watch market and crypto have decided to sell off the former to recover losses of the latter.
According to a recent article by Washington Post, some brands that have been less affected include A. Lange & Söhne and Vacheron Constantin. The prices for some watches that are high in demand may have been reduced. However, since there are wait lists spanning years, the short-term may not see much difference.
Without a doubt, 2021 was a year where it seemed that money is flowing fast and freely. For instance, a Tiffany-blue Patek Philippe Nautilus got sold for AU$9,058,366 in an auction while the actual retail price was only AU$73,318.
However, good things never go on forever. It looks like the time has arrived for the market to finally correct itself. Earlier this year in May, WatchPro reported that the prices had fallen by 10-15% for the most desired brands such as Patek Philippe. Later in June, some of the most popular Rolex watches dropped 50% in their value.
Part of it is due to the crypto crash, while some credit goes to the rising interest rates. However, it is all interconnected. The watch market correction is just among the few examples. The crypto crash has widely affected many other markets that are directly or indirectly tied to cryptocurrencies.
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