The correlation between Bitcoin (BTC) and luxury watches has deteriorated with the recent rises in the cryptocurrency market.
The long-standing positive correlation between Bitcoin and luxury watches has been disrupted by the rise. Especially the one with a strong positive correlation prior to spot Bitcoin exchange-traded fund (ETF) confirmations. Bitcoin and luxury watchessevered its ties due to the effects of the rises in the last 4 months.
This remarkable correlation will continue in 2021 Covid pandemic There was a significant increase in the price of both luxury watches and Bitcoin. Bitcoin and luxury watches The main similarity between them stems from the fact that they both have a limited supply.
According to data from WatchCharts, which focuses on luxury watch markets, this is the final price peak in the sector. 2021 bull at the end of the market and 2022 cryptocurrency recession It was seen at the beginning.
Bitcoin price in recent months upward movement while luxury watch prices are the opposite. has lost significant value.
Research Manager of VDX, the Hong Kong stock exchange, made a statement on the subject: Greta YuanHe stated that it is not surprising that Bitcoin is performing better compared to luxury watches:
Bitcoin is essentially known as digital gold, so it’s no surprise that it has outperformed luxury watches in the past year. The market recently bounced back above the 42k level, suggesting strong demand from investors to buy the dip.