Bloomberg’s latest data analysis, Bitcoin It shows that the revival in price simultaneously creates an important balancing act in the luxury watch market. This stability marks a potential turning point, especially after a long downward trend in the prices of high-end pre-owned Rolex and Patek Philippe watches.
A reliable benchmark such as the Bloomberg Subdial Hour Index indicates that the market is stable with a marginal decline, indicating that the market’s downtrend has stopped. This stability can be attributed to several factors, including strong stock market performance and Bitcoin’s revival. Also, at the Watches and Wonders event to be held in April Rolex and Patek Philippe’s introduction of their new models has created great expectation among both investors and enthusiasts.
The increase in Bitcoin’s performance also resonated with the luxury watch market and significantly affected investor sentiment. This increase, combined with low borrowing costs, instilled confidence in the market and provided vitality in luxury watch prices.
Certain models, particularly the Rolex GMT ‘Pepsi’, have experienced an increase in price, defying prevailing market trends. Analysts attribute the previous rise in secondary watch market prices during the pandemic to the significant increase in the value of Bitcoin, highlighting the intertwined nature of cryptocurrency markets and luxury goods.
When analyzing specific watch models, market reaction and changes in Bitcoin price, significant price movements are observed in popular models such as the Audemars Piguet ‘Jumbo’ Royal Oak and Patek Nautilus 5711. In particular, the Rolex GMT with its red and blue ceramic bezel, known as ‘Pepsi’, experienced a notable price increase of approximately 1.9%. While the new watches to be introduced at the Watches and Wonders event are expected to have an impact on prices, how the market will react to these watches is being closely monitored.
Despite general stability, fluctuations continue. While some models experience declines, the value of others maintains or even increases. The recent Bitcoin recovery has significantly impacted investor sentiment, with its price rising by 3.23% to $68,462.46 at the time of writing. However, Bitcoin’s 9.80% decline in trading volume and $1.34 trillion market cap underscores the enduring impact and potential importance of cryptocurrencies on luxury watch prices.
