This is why Bitcoin (BTC) is better than Rolex and Patek Philippe

One Bitcoin (BTC) can now fetch more than a luxury watch from Rolex and Patek Philippe on the secondary market. Bitcoin is surging as the boom in watch sales continues, prompting more caution amid higher interest rates.

According to Bloomberg, the price of the 50 most traded watches has dropped by 42% since April 2022. Bitcoin fell by 4%, ending April 2022 at $37,792.73. It is currently trading at $36,280.

High supply levels tank rolex prices

The drop in prices follows an increase in demand for watches from Rolex, Patek Philippe and Audemars Piguet during the outbreak. Since then, high interest rates and uncertain growth prospects have dampened enthusiasm for the US economy.

Since August, price volatility for major brands has increased by 12%, while the number of used watches on the secondary market has increased by 5%. Bitcoin prices increased from an average of $27,852.79 in August to around $37,000 in November.

Read more: Crypto vs. Stocks: Where to invest your money in 2023

The watch market has experienced an oversupply as watch trading platforms take 8% to sell watches. Secondary market price indices for Rolex and Patek Philippe watches fell 1.5% and 2.3% in October.

Bitcoin (BTC) is better than Rolex and Patek Philippe.

Falling prices for pre-owned watches mean their investment potential is shrinking. The market was depressed by high interest rates, which reduced the ability of bonds to be a stable source of value.

But Pierre Duprel, managing partner at Boston Consulting Group, said:

“There's definitely been some accommodation in 2023, but overall we see that prices are definitely much higher than they were before the pandemic. I don't think it's a bubble burst. I think as the economy stabilizes, you'll see prices stabilize or maybe start to rise again.

However, as the asset has risen independently of interest rates compared to last year, the odds are higher for those holding Bitcoin. Since 2022, the correlation with the stock market has been significantly reduced as asset prices correlate with investor sentiment.

Since June, Bitcoin has experienced several bullish catalysts, including regulatory maturation and the pending approval of exchange-traded funds (ETFs) that track its price directly. Investors expect next year's halving to increase the price even more as the event slows the rate at which new bitcoins enter circulation and depreciates the asset.

Read more: What is Bitcoin Half?

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