The latest moves in the crypto space would lead to an increase in the supply of second-hand luxury watches, according to a sales platform. As a result, prices for sought-after models from top brands like Rolex and Patek have plummeted, the Chrono 24 company has revealed.
The cryptocurrency crash has flooded the market with Rolex and Patek.
The recent plunge in cryptocurrency valuations “has had a direct impact on the prices of luxury watches from brands like Rolex and Patek Philippe,” said the company, which is based in Karlsruhe, Germany, and has more than 100,000 customers. half a million watches for sale on its website.
The offer of trophy watches, such as the Rolex Daytona or the Patek Nautilus 5711A, “is now much more important“, found the online platform based in Karlsruhe. Chrono24 said in a statement. The collapse of cryptocurrencies increases the supply of the most sought-after models on the second-hand market, he said.
The report notes that the drop in prices for the most sought-after Rolexes is an indication that the market for second-hand luxury watches is starting to lose momentum. And this, after the surge in crypto-currencies which, before, had led to the birth of a new class of luxury buyers and an unprecedented increase in the prices of models from the biggest brands.
These consumers are now responding to each other, and the prices of the most sought-after watches are approaching those of other similar products. This trend represents market consolidation, noted Tim Stracke, co-CEO of Chrono24.
Meanwhile, trading volumes on the site, where resellers and private sellers find buyers, grew more than 50% in the first half of 2022, the executive revealed. And while a Patek Philippe Nautilus 5711A sells for $190,000 today, up from $240,000 in the first quarter, prices for many models from Cartier and Breitling have risen.
The German company also pointed to an increase in demand for almost all models from Omega’s Speedmaster collection, offered as part of the collaboration with Swatch. Chrono24 also expects overall sales on its platform to expand in the second half.
Cryptocurrencies and luxury watches already have a common history. In May, Swiss watchmaker TAG Heuer said it was introducing online cryptocurrency payments for its customers in the United States through an integration with Bitpay. This month, another Swiss luxury watchmaker, Franck Muller, announced that it was launching an exclusive Binance NFT collection with limited-edition timepieces.