The cryptocurrency dip has been systematic for the past 12 months but it further plummeted in June 2022 when it was reportedly triggered by the freezing of withdrawals and transfers by a major US Crypto lending company, Celsius Network. The company had predicated its decision on what it termed ‘extreme’ conditions, a move that fuelled the slump across cryptocurrencies, with their value falling below $1trillion for the first time since January last year.
The fall in crypto is suddenly coincidental with the recent slump in aftermarket prices of Rolex watches, but how do we link them together?
The British-founded Swiss watch designer and manufacturer has made its coveted piece of jewellery demand a ridiculous premium in the market, with the prices of popular Rolex models skyrocketing over the last two years, especially during the pandemic.
The hype and the shoot up in the prices coincided with the rise in the use of other alternative asset classes like NFTs and cryptocurrencies.
What then can we call the correlation now that there is a crypto dip, there is now a Rolex watch priced dip? What can be the relationship between the two?
With Crypto veterans and average users counting their losses from the dip, Rolex on the other hand is beginning to lose all the price gains they made this year on the resale market.
The WatchCharts’ Rolex Market Index, comprising 30 popular Rolex models with high trade activity, such as the Cosmograph Daytona ‘Panda’ (ref. 116500) and the GMT-Master II ‘Pepsi’ (ref. 126710BLRO), as at publishing is now sitting at AU$19,851, a 14 percent decrease from a record high of over AU$23,000 it has in mid-April 2022.
The decline appear consonant with the performance of Bitcoin over the same period of time, with Bitcoin falling by an approximately 30 percent over the last six months.
According to Bloomberg , “the bubble in second-hand timepieces was fuelled by a combination of crypto and stock-market gains, stimulus cash and speculation. That is now unravelling.”
“So far, demand for both new watches and other types of luxury goods is holding up. But what’s happening in the secondary watch market is a stark reminder that the bling boom, particularly in the US, might not last.”
This may then be a positive thing for retail investors as cheaper prices at the aftermarket would not only make it easier to have their wallet pick up a Rollie, also disincentives’ flippers from buying up new Rolexes at retail and exhausting allocations for the average buyer, in the process making buying at retail a more realistic prospect.
The Rolex prices are expected to in the coming days drop more before the company gets back up to full steam in terms of production.
But the harmony in rise and fall of stock/crypto markets and Rolex Watches ain’t just looking like just a coincidence, it’s looking more internationals.
Ayoola Faseyi, an Abuja based Journalist with interest in Technology and Politics. He is a versatile writer with articles in many renowned News Journals.
He is the Co-Founder of media brand, The Vent Republic.
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