Luxury Watches vs. Crypto: An Unexpected Duo During the Covid lockdowns, consumer spending shifted from experiences to physical products, driving demand for both luxury watches and cryptocurrencies. As crypto prices soared, many winners invested their gains into luxury watches, causing a bubble in the secondary market with waiting lists up to 10 years and premiums of 2-3 times retail prices. The peak of this trend coincided with the 2021 bull market's end and the 2022 crypto recession's start. Since then, luxury watch prices have decoupled from Bitcoin, with recent crypto gains not yet impacting the watch market. However, the resurgence of crypto offers hope for recovery. Bitcoin's 157% rise in the past six months could soon translate into renewed interest in rare timepieces. The market dynamics have changed, with more people hooked on watch collecting and "watchfluencers" promoting the hobby. Auction market sales were up 6% in 2023, though prices remain lower. The biggest trend has been a shift from sports watches to dressier models and from stainless steel to yellow gold. Collaborations like OMEGA x Swatch are also gaining traction. Top auction houses like Christie's and Phillips saw record sales, with Patek Philippe leading the top sales. As we look ahead, 2025 promises to be an exciting year with many brands celebrating anniversaries and releasing limited-edition pieces. Despite current low prices, now might be the time to buy your "grail watch" before the market improves. While a repeat of the Covid-era escalation is unlikely, watch investing remains a long-term play. Both luxury watches and crypto share a key trait: scarcity. Time will tell how these markets intertwine in the future. ⌚💎 #Crypto #luxurywatches P.S. This was stolen from one of my favourite newsletters @AltAssetsInc and rewritten on GPT. Go check them out!