Why One Bitcoin Can Now Fetch More Than Rolex and Patek Philippe Watches

One Bitcoin (BTC) can now fetch more than a luxury timepiece from Rolex and Patek Philippe on the secondary market. Bitcoin is rising, while the pandemic boom in watch sales has given way to more caution amid high interest rates.

The prices of the 50 most traded watches have fallen 42% from their high in April 2022, according to Bloomberg. Bitcoin fell 4% in the same period, finishing the month of April 2022 at $37,792.73. It is now trading at $36,280.

High Supply Levels Tank Rolex Prices

The decline in prices follows a surge in demand for watches from Rolex, Patek Philippe, and Audemars Piguet during the pandemic. Since then, high interest rates and uncertain growth prospects for the US economy have dampened enthusiasm.

(SPON) ChatGPT Gives Price Projections for Solana (SOL) And Inqubeta (QUBE) (14:00UTC)
https://beincrypto.com/chatgpt-gives-price-projections-for-solana-and-inqubeta/ — Watch Price Decline | Source: Bloomberg

Price uncertainty for the top brands has increased to 12% since August, while the number of used watches on the secondary market has risen by 5%. Bitcoin’s price increased from an average of $27,852.79 in August to approximately $37,000 in November.

Read more: Crypto vs. Stocks: Where To Invest Your Money in 2023

The watch market has also experienced a surplus supply since watch trading platforms are taking 8% longer to sell watches. Price indices for secondary market Rolex and Patek Philippe watches fell 1.5% and 2.3% in October.

Bitcoin (BTC) is Better Than Rolex and Patek Philippe

The price declines for pre-owned watches means that their investment potential is declining. The market has been stung by high interest rates that have diminished the potential of the timepieces as a stable source of value.

But Pierre Dupreelle, managing partner at Boston Consulting Group, said:

“There’s definitely been some landings in 2023, but we see that the prices overall have definitely stayed much higher than they were pre-pandemic. I don’t think it’s a burst of a bubble. I think as the economy stabilizes, you can see the prices stabilizing or maybe starting to rise again.”

However, the prospects are rosier for those who hold Bitcoin since the asset has increased independently of interest rates compared to last year. The asset’s correlation with the stock market has declined substantially since 2022 as its price becomes more related to investor sentiment.

Since June, Bitcoin has experienced several bullish catalysts, including the maturation of regulations and the anticipated approval of exchange-traded funds (ETFs) that directly track its price. Investors expect next year’s halving to increase its price further as the event reduces the rate at which new Bitcoins enter circulation and keeps the asset deflationary.

Read more: What Is Bitcoin Halving?

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