The cryptocurrency crash has flooded the Rolex and Patek markets with bargains
Recent movements in the crypto space have reportedly led to a surge in the supply of used luxury watches, according to a resale platform. As a result, the prices of coveted models from top brands like Rolex and Patek have plummeted, the Chrono24 company revealed.
The cryptocurrency crash has flooded the market with Rolex and Patek.
The recent slump in cryptocurrency valuations “has directly impacted the prices of luxury watches from brands like Rolex and Patek Philippe,” said the Karlsruhe, Germany-based company, which has more than 100,000 customers and half a million watches for sale on its website .
The range of trophy watches, such as the Rolex Daytona or the Patek Nautilus 5711A, “is much more important now“, found the online platform based in Karlsruhe. Chrono24 announced this in a statement. The cryptocurrency crash is increasing the supply of the most desirable models on the used market, he said.
The report finds that the drop in prices for the most desirable Rolex watches is an indication that the pre-owned luxury watch market is slowly losing momentum. And this is after the rise of cryptocurrencies, which previously led to the birth 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 desirable watches are approaching those of other similar products. This trend represents market consolidation, noted Chrono24 co-CEO Tim Stracke.
Meanwhile, trade volume on the site, where resellers and private sellers find buyers, grew by more than 50% in the first half of 2022, the executive announced. And while a Patek Philippe Nautilus 5711A sells for $190,000 today, up from $240,000 in the first quarter, prices for many models from Cartier and Breitling have increased.
The German company also pointed to an increasing demand for almost all models from Omega’s Speedmaster collection, offered as part of the collaboration with Swatch. Chrono24 also expects total revenue on its platform to increase in the second half of the year.
Cryptocurrencies and luxury watches already have a common history. In May, Swiss watch manufacturer TAG Heuer announced that it is launching online cryptocurrency payments for its customers in the United States through an integration with Bitpay. This month, another Swiss luxury watch manufacturer, Franck Muller, announced that it is launching an exclusive Binance NFT collection of limited-edition watches.