Will the rise in BTC price bring back luxury product buyers wanting to use crypto?
Yes, but with some caveats.
The recent rise in bitcoin and other major cryptocurrencies has potentially re-opened the market of crypto-holding buyers for luxury goods, ie. boats, jets, art, etc.
They have been dormant since the fourth quarter of 2022, and for good reason. Market uncertainty from the fallout over FTX and related parties, a strong bear market, and a BTC price hovering around $16,000.
Prior to Q4 and earlier in 2021 and 2022, the crypto buyer went aggressively into the luxury market and those who accepted cryptocurrencies found willing and able new buyers. This provided new revenues for sellers without eating into existing customer bases. In fact, the crypto buyers were still strong after the cash buyer went on the sidelines and before the FTX crash.
As the markets stabilize and BTC and ETH are up 28% and 23%, respectively, crypto buyers are coming back, although with some caveats. After what everyone thought was a respected exchange collapsed, as did their satellites, it’s clear that using exchanges and unregulated and underfunded fin-tech platforms for crypto payments has lost its luster. Buyers are coming back, but security and pricing are at the forefront of any transaction.
Gone are the days of quickly transacting on an exchange platform or a fin-tech which usually hides several % in fees. Buyers are paying a lot more attention to security and pricing than ever before. But they are coming back!!
