The Crypto Collapse has Flooded the Market with Rolex and Patek
The latest
troubles in the crypto space have led to an increased supply of second-hand
luxury watches, according to a leading trading platform. The company has
revealed that the prices of premium models by major brands like Rolex and Patek
have plummeted.
Crypto Crash Impacts Resale Prices of Top Watches
The German
online platform that lists hundreds of thousands of watches has noticed the
decline in the valuations of crypto assets has directly impacted the pricing of
luxury watches such as Rolex, Patek Philippe, and several similar models. The
supply of trophy watches, such as the Rolex Daytona or Patek Nautilus 5711A,
"is now much larger," the Karlsruhe-based Chrono24 said in
a statement, quoted by Bloomberg. The crypto collapse is easing the supply of
the most desired models on the second-hand market, it elaborated.
The report
notes that the decreasing prices of the most wanted timepieces are an
indication that the second-hand luxury watch market is starting to lose momentum.
The surging crypto prices had led to the birth of a new class of luxury buyers
and an unprecedented increase in the prices of premium models from the top
brands. Consumers are now retreating and the prices for most premium watches
have fallen in line with other similar products. The trend represents a
consolidation of the market, remarked Chrono24 Co-CEO, Tim Stracke.
Meanwhile,
the trading volumes on the site, where dealers and private sellers find buyers,
spiked more than 50% during the first half of 2022, the executive revealed. And
while a Patek Philippe Nautilus 5711A is now selling for USD 190,000, down from
USD 240,000 in the first quarter, the prices of many models from Cartier and
Breitling have shot up.
The German
company also pointed to an increase in demand for almost all models. 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 together. In May, Swiss watchmaker
TAG Heuer said it’s introducing online crypto payments for its customers
in the U.S. through integration with Bitpay. This month, another luxury watch
manufacturer from Switzerland, Franck Muller, announced the launching
of an exclusive Binance NFT collection with limited-edition timepieces.
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