According to a resale platform, the latest moves in the crypto space have led to an increase in the supply of second-hand luxury watches. As a result, the prices of sought-after models from top brands like Rolex and Patek have plummeted, Chrono 24 company revealed.
The collapse of the cryptocurrency flooded the market with Rolex and Patek.
The recent decline in cryptocurrency valuations “has had a direct impact on the prices of luxury watches from brands such as Rolex and Patek Philippe,” said the company, which is headquartered in Karlsruhe, Germany, and has more than 100,000 customers. half a million watches for sale on its website.
The offering of trophy watches, such as the Rolex Daytona or the Patek Nautilus 5711A, “now it is much more important“, Found the online platform based in Karlsruhe. Chrono24 said in a statement. The collapse of the cryptocurrency is increasing 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 Rolex watches is an indication that the second-hand luxury watch market is starting to lose momentum. And this, after the surge in cryptocurrencies that previously led to the emergence of a new class of luxury buyers and an unprecedented increase in the prices of models from the biggest brands.
These consumers are now retreating 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 retailers and private sellers find buyers, grew by more than 50% in the first half of 2022, the executive revealed. And while a Patek Philippe Nautilus 5711A today retails for $ 190,000, up from $ 240,000 in the first quarter, the prices of many models from Cartier and Breitling have risen.
The German firm also reported an increase in demand for almost all models in Omega’s Speedmaster collection, offered as part of the collaboration with Swatch. Chrono24 also expects an increase in overall sales on its platform in the second half.
Cryptocurrencies and luxury watches already have a common history. In May, Swiss watchmaker TAG Heuer said he was introducing online cryptocurrency payments to his US customers through an integration with Bitpay. This month, another Swiss luxury watch maker, Franck Muller, announced that he was launching an exclusive Binance NFT collection with limited edition timepieces.