The cryptocurrency market will remember 2021 with nostalgia. Values soared and Bitcoin hit an all-time high of over $64,000. Quite the opposite of this year, where the values of the main cryptos are collapsing, leading to bankruptcies and waves of layoffs in the sector.
In addition, the decline in the value of BTC and other cryptocurrencies has other consequences. For example, the fact that the value of Bitcoin has fallen has reduced energy consumption related to mining, since there is less incentive for this activity. On the other hand, the crypto winter has also reduced the demand for graphics cards (used to mine some crypto) around the world.
Luxury watches: prices are falling
And that’s not all. Indeed, with the bearish trend in the world of cryptos, the demand for luxury watches is also decreasing. This is in any case what indicates an article published recently by Bloomberg.
He relayed information from a platform specializing in the sale of second-hand luxury watches, Chrono24. According to the American media, with the collapse of the cryptos, the supply for the most sought-after watches on the second-hand market has increased, and the prices of the hard-to-find Patek Phillippe or Rolex models have fallen.
Chrono24, on which more than half a million watches are offered for sale, indicates that recent changes in cryptocurrency prices have a direct impact on the prices of luxury watches from the brands mentioned above.
And the explanation is very simple. During the crypto uptrend, a new class of customer is interested in luxury watches, which has driven the price of these products higher. Today, with the collapse of crypto values, the opposite phenomenon is observed.
For example, according to the Bloomberg article, a Patek Philippe Nautilus 5711A watch, marketed at $35,000, could sell for $240,000 in the first quarter. And today, the same product would sell for $190,000, according to data collected by the media from Chrono24.
During the uptrend, demand for other brands, such as Cartier or Breitling, also increased.
A large number of bitcoin transactions
It remains to be seen whether demand and prices will rise again for these products, if cryptocurrency values rebound. In any case, another company had already noticed that the owners of certain cryptocurrencies did indeed tend to spend their earnings on luxury goods.
Earlier this year, we wrote about a study by BitPay, a platform for accepting crypto payments. According to this firm, when Bitcoin owners made purchases, many looked to luxury goods like jewelry, watches, cars or boats, and gold.