No Matter How Many Luxury Brands Adopt Bitcoin, its Value is Still Declining
Acceptance from giant brands is not helping the Bitcoin price to elevate anymore.
The avant-garde fashion powerhouse Balenciaga is not about to be left behind and is preparing to accept cryptocurrencies as a payment option for its American clientele. The French luxury company announced that it will accept Bitcoin and Ethereum payments in the United States starting next month.
Given the decline in value of most crypto assets over the past 10 days, one could argue that the timing wasn’t perfect, but starting from the United States, Balenciaga will now take cryptocurrencies at its flagship locations, including Rodeo Drive in Beverly Hills and Madison Avenue in New York. Balenciaga says that it will examine cryptocurrencies on a long-term basis, keeping in mind that the currency value fluctuations are nothing new. The company said other regions and e-commerce will follow suit. A spokesman from the fashion behemoth disclosed that the business anticipates a future powered by crypto and is unfazed by currency market volatility because they are not novel.
Bitcoin and other cryptocurrencies are in the spotlight and are being outfitted by the world’s leading fashion brands. Balenciaga opted to go on its own digital adventure just as the cryptocurrency community was raving about several luxury companies enabling cryptocurrency payments in their US stores. Several other premium retailers have begun accepting Bitcoin. In March, Off-White implemented a similar payment system in its Paris, Milan, and London flagship stores. Other prominent businesses, including LVMH Hot and Tag Huer, announced earlier this month that they will accept a variety of cryptocurrencies, including Bitcoin, Dogecoin, and Ethereum, at checkout. The CEO of Tag Huer, Frédéric Arnault, who personally holds NFTs and other Web3 assets, believes cryptocurrencies have the potential to revolutionize the fashion business.
Arnault stated to Vogue Business regarding the announcement:
“Since the inception of Bitcoin trading, we have been monitoring the development of cryptocurrencies closely. Despite the fluctuations, we anticipated that, as an avant-garde watchmaker with a pioneering attitude, Tag Heuer would adopt what promises to be a globally integrated technology in the near future.”
Gucci has also rapidly implemented Web3 technologies. Gucci has just established a Web3-focused team and acquired digital real estate, which is being developed on The Sandbox.
The Sandbox is a blockchain-based real estate platform where Adidas, Al Dente, and others are constructing virtual properties. Meanwhile, Morgan Stanley forecasts that the market for luxury-branded NFTs might reach $56 billion by 2030. This likely clarify the increased interest in NFTs and why major brands have joined the crypto and NFT bandwagon.
But the point is, even after these luxury giants are supporting and accepting Bitcoin on a rapid basis, the value of the cryptocurrency remains stagnant at the US$30k and US$29k resistance. It seems like Bitcoin would need more assistance and guidance from its investors.