Luxury Watch Market Rebounds as Crypto Falters

The luxury watch market is experiencing a resurgence, diverging from the recent struggles of the cryptocurrency market. Even as Bitcoin and other cryptocurrencies have seen significant declines, secondary market prices for high-end watches have risen approximately 4% over the past six months, signaling a shift in investor preferences towards tangible assets.

A Market Correction and Stabilization

Following a period of decline spanning two years, the luxury watch market is showing signs of stabilization. This rebound is attributed to several factors, including the clearing of excess inventory, firmer pricing from sellers and retail price increases averaging around 7% since early 2025, according to a report co-authored by Morgan Stanley and WatchCharts. Source

Shift in Investor Sentiment

Investors are increasingly favoring physical assets like luxury watches, gold, and silver over the volatility of the crypto market. This trend is particularly evident in the demand for top brands such as Rolex, Patek Philippe, and Audemars Piguet. The CoinDesk 20, a measure of the broader crypto market, has dropped more than 30% over the same period that watch prices have increased. Source

The Pandemic’s Impact and Subsequent Correction

The luxury watch market experienced a significant boom during the pandemic, fueled by increased disposable income and a lack of alternative spending opportunities. Though, prices reached unsustainable levels for some models, driven by internet trends and speculation. For example, a Rolex GMT Master model in white gold with a meteorite dial saw its price increase from around $1 million to as much as $2-3 million within months, before subsequently falling back below retail price. Source

Factors Contributing to the Decline in 2022

The peak of the market occurred in the spring of 2022, coinciding with the easing of pandemic restrictions and a decline in Bitcoin prices. A surge in supply from sellers, combined with economic factors such as the real estate crisis in China and the energy crisis in Europe, contributed to a price correction. Source

Current Market Trends

While some models still command a premium on the secondary market, the overall trend is towards normalization. Authorized dealers are continuing to achieve stable sales, with strong demand for brands like Rolex and Patek Philippe. Customers are prioritizing both aesthetic appeal and technical quality when making purchasing decisions. Source

Future Outlook

Despite the recent volatility, traders in the secondary market remain optimistic about the future. Prices are showing signs of gradual increases, and the market is stabilizing. While the prospect of quick profits has diminished, luxury watches continue to hold appeal as both a status symbol and a potential store of value. Source