The historic positive price correlation between Bitcoin">Bitcoin and luxury watches fueled by massive pandemic stimulus has decisively delinked thanks to the advent of spot BTC exchange-traded funds (ETFs).
Analysis shows BTC and luxury watch pricing moved in tandem through most of 2023 as expectations built for SEC approval of Bitcoin ETFs. But as over a dozen offerings debuted this January, powering the CoinDesk 20 higher, watch prices diverged downward amid global monetary tightening.
The decoupling highlights institutional investor interest in Bitcoin products like ETFs while questioning modern utility around luxury timepieces replaced by smartphones. As ContentFi Labs’ COO Nick Ruck states, “Investors have finally caught on to the empty promises of watch utilities.”
Still, some like VDX Head of Research Greta Yuan argue Bitcoin’s status as “digital gold” has allowed it to better hold value versus luxury assets exposed to markets gripped by policy uncertainty. The durability spotlights crypto’s maturation.
As debates persist around Bitcoin’s utility, the severing of one long-running price relationship speaks to its expanding correlations with mainstream assets and dependence on macro factors over fringe speculation. For now, the crypto pioneer marches to the beat of a more institutional drummer.
