The recent surge in Bitcoin‘s (CRYPTO: BTC) value could potentially lead to a surge in the prices of luxury watches, a trend that was observed during the cryptocurrency’s previous rally in 2021.
What Happened: The recent surge in Bitcoin’s value could lead to a similar increase in the prices of luxury watches, as was seen during the cryptocurrency’s previous rally in 2021. The prices of luxury watches in the secondary market have been moving in line with Bitcoin and the S&P 500 index for the past five years, as reported in a Bloomberg opinion piece.
During the 2021 cryptocurrency surge, the prices of in-demand watches, such as the Rolex Daytona, the Patek Philippe Nautilus, and the Audemars Piguet Royal Oak, skyrocketed. The surge in cryptocurrency values resulted in increased wealth and a broader interest in investing in alternative assets, including luxury watches. This led to a surge in prices for these models in the secondary market.
With Bitcoin’s recent 80% gain and the S&P 500 also reaching new highs, the prices of luxury watches in the secondary market have stabilized. However, it remains to be seen if this will lead to a similar surge in watch prices as seen three years ago.
Why It Matters: The recent surge in Bitcoin’s value could have a significant impact on the luxury watch market. This is not the first time that Bitcoin’s movements have influenced the prices of luxury watches. In 2021, the surge in cryptocurrency values led to a bubble in the prices of in-demand watches. The recent surge in Bitcoin’s value could potentially lead to a similar increase in watch prices, which could have broader implications for the luxury goods market.
Meanwhile, the recent surge in Bitcoin’s value has also sparked interest in the fractional tokenization of real-world assets, as seen with the Portuguese company Lympid’s initiative to tokenize luxury watches. This trend could further impact the luxury goods market, as it opens up ownership of these assets to a broader range of investors.
However, the crypto market has also been plagued by phishing scams, with a staggering $47 million stolen in February. These scams targeted over 57,000 victims and primarily involved Bitcoin, Dogecoin, and Shiba Inu.
Price Action: At the time of writing, the price of Bitcoin was $67,857, down 8% in the last 24 hours, according to data from Benzinga Pro.
Read Next: Why Can’t Dogecoin And Shiba Inu Keep Up With Other Meme Coins?
Photo BY Christian Wiediger for Unsplash
Engineered by Benzinga Neuro, Edited by
Kaustubh Bagalkote
The GPT-4-based Benzinga Neuro content generation system exploits the extensive Benzinga Ecosystem, including native data, APIs, and more to create comprehensive and timely stories for you.
Learn more.