Bitcoin Booms as Luxury Watches Bust in Diverging Asset Tales
• Bitcoin and luxury watch prices were positively correlated during the pandemic as asset prices rose from central bank stimulus
• The correlation broke down in late 2022 as bitcoin rallied on optimism around SEC approval of spot bitcoin ETFs
• Luxury watch prices kept falling in 2023 due to tightening monetary policy reducing speculative trading
• Bitcoin is seen as "digital gold" with institutional investor interest, but luxury watches lack underlying utility
• Smartwatches have replaced mechanical watches' main function of telling time, questioning the value proposition of luxury watches