The cryptocurrency market will remember 2021 with nostalgia. Values have skyrocketed and Bitcoin hit an all-time high of over $ 64,000. Quite the opposite of this year, where the values of the main cryptocurrencies are plummeting, leading to bankruptcies and waves of layoffs in the sector.
Furthermore, the decline in the value of BTC and other cryptocurrencies has other consequences. For example, the fact that Bitcoin’s value has decreased has reduced the energy consumption associated with mining, as there is less incentive for this activity. On the other hand, the winter of cryptocurrencies has also reduced the demand for graphics cards (used to mine some cryptocurrencies) around the world.
Luxury watches: prices go down
And that’s not all. In fact, with the bearish trend in the world of cryptocurrencies, the demand for luxury watches is also decreasing. This is in any case what a recent article published by Bloomberg indicates.
This relays information from a platform specializing in the sale of second-hand luxury watches, Chrono24. According to the American media, with the collapse of cryptocurrencies, the supply of the most sought-after watches on the second-hand market has increased and the prices of the nowhere to be found 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 are having a direct impact on the prices of the luxury watches of the aforementioned brands.
And the explanation is very simple. During the uptrend of cryptocurrencies, a new class of customers took an interest in luxury watches, which pushed the prices of these products up. Today, with the collapse of cryptographic values, the opposite phenomenon is observed.
For example, according to the Bloomberg article, a Patek Philippe Nautilus 5711A watch, marketed for $ 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 Chrono24 media.
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 some cryptocurrencies tended to spend their earnings on luxury goods.
Earlier this year, we wrote about a study of BitPay, a platform for accepting cryptocurrency payments. According to this company, when Bitcoin owners made purchases, many turned to luxury goods such as jewelry, watches, cars or boats and gold.