According to a leading trading platform, recent problems in the cryptocurrency space have led to an increase in the supply of allegedly second-hand luxury watches. As a result, prices for sought-after models from major brands such as Rolex and Patek have fallen.
Higher supply after the cryptocurrency crash is hurting resale prices of top watches from Swiss brands like Rolex
The German online platform, which lists hundreds of thousands of watches, noted that the recent decline in the valuation of cryptocurrencies has directly affected the price of Rolex, Patek Philippe and similar luxury watches.
The supply of trophy watches like the Rolex Daytona or the Patek Nautilus 5711A is “now much bigger,” the Karlsruhe-based company said Chrono24 “Bloomberg” agency reports that this was reported. The collapse of cryptocurrency makes it easier to supply the most desirable models on the second-hand market.
The report notes that the drop in prices for the most sought-after watches is an indication that the second-hand luxury watch market is starting to lose momentum. Earlier, the rise in cryptocurrency prices led to the emergence of a new class of luxury buyers and an unprecedented increase in the prices of models of top brands.
These consumers are now pulling back, and the prices of the most sought-after watches are falling in line with other similar products. Chrono24 CEO Tim Stracke noted that the trend reflects market consolidation.
Meanwhile, trading volume on the site, where dealers and individual sellers find buyers, increased by more than 50% in the first half of 2022. While the Patek Philippe Nautilus 5711A is now selling for $190,000, down from $240,000 in the first quarter, many models from Cartier and Breitling have seen price increases.
The German company also noted increased demand for almost all models in Omega’s Speedmaster collection, which is offered as a product of the collaboration with Swatch. Chrono24 also expects overall sales on its platform to increase in the second half of the year.
Cryptocurrencies and luxury watches already have a history. Swiss watchmaker TAG Heuer in May he said Provides online crypto payments for its US customers through integration with Bitpay. This month, Franck Muller, another luxury watchmaker from Switzerland, announced presents an exclusive Binance NFT collection with limited edition watches.
Do you expect resale prices of top luxury watch brands to rise again with rising cryptocurrency prices? Let us know in the comment section below.
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