Arab Press

بالشعب و للشعب
Saturday, Feb 22, 2025

Crypto tycoons help drive global art market to record levels in 2021

Crypto tycoons help drive global art market to record levels in 2021

Newly wealthy and pent-up demand from Covid-hit 2020 among reasons as sales of sought-after works boom

The global art market performed at record levels in 2021, with billions of dollars being paid for works by impressionist, postwar and contemporary artists, and much of it bought by people whose wealth comes from cryptocurrencies or other technologies.

More than $2.6bn (£2bn) of art was sold in two weeks by leading auction houses in New York in November. Four works by Vincent van Gogh sold for $161m, including $71.4m paid for Wooden Huts Among Olive Trees and Cypress Trees.

In May, Jean-Michel Basquiat’s 1983 2-metre-tall painting In This Case became 2021’s single most expensive painting to change hands when it sold for $93m. The sale in November of 35 works from the Macklowe Collection – by Andy Warhol, Jackson Pollock and Mark Rothko, among others – totalled more than $676m. Landscape by Nicolas Party went for $3.2m, doubling the Swiss artist’s previous record.

“The art market is certainly frothy. And I think the audience for art is larger than it’s ever been. We’re seeing record levels in the 277-year history of our company,” said Charles Stewart, the chief executive officer of auction house Sotheby’s.

The Hamilton Aphrodite on display at Sotheby’s in London before being sold in New York for almost $25m.


Art market experts say demand that was pent up in 2020 by the global Covid pandemic has released at the same time as sought-after artworks are being put up for sale. “There has been an extraordinarily high level of quality material coming to the market and that has drawn the attention of buyers,” said Stewart.

It is not only paintings that are commanding enormous sums. Last month, the Hamilton Aphrodite, a Roman sculpture dating back to the first or second century AD, established a new world record for an ancient marble sculpture when it sold in New York for almost $25m, smashing its pre-sale estimate of $2m-$3m.

Luxury auctions at Sotheby’s – including streetwear and skateboard decks as well as jewellery, watches, handbags, wines and whiskey – totalled more than $1bn for the first time in 2021.

And a non-fungible token (NFT) of Everydays: the First 5,000 Days by Mike Winkelmann, the digital artist known as Beeple, sold for a record $69m in March, making him “among the top three most valuable living artists”, according to Christie’s.

“It’s true that the market is performing at record levels, and certainly outperforming most people’s expectations,” said Katharine Arnold, the head of postwar and contemporary art at Christie’s.

Detail of the digital collage by the American artist Beeple, which sold for a record $69m.


However, the market for old masters was less buoyant, with sales at auctions last month down almost 20% on comparable sales two years ago.

According to the 2021 Contemporary Art Market Report, $2.7bn worth of contemporary art was sold at auction in the 12 months to June, representing a “stronger, more diverse and denser market than ever before”.

Experts attribute the booming market to at least three factors, which may overlap: young “crypto-driven” buyers; the growth in the Asian market; and the belief that art is a good investment at a time of economic uncertainty.

People who have made fortunes from cryptocurrencies and other technologies “are now participating at very high levels”, said Stewart. “They are young and they are global.”

In November, Sotheby’s accepted live bids in the ether cryptocurrency – favoured by the digital art and NFT community – for the first time in the sale of two works by Banksy, Trolley Hunters and Love Is in the Air. They sold for $6.7m and $8m respectively.

Cryptocurrency payments had become “a viable alternative to fiat currency”, said Arnold.

In November, a cryptocurrency group amassed more than £47m, or 11,600 ether, in a few days on its online crowdfunding page in an attempt to buy a rare surviving copy of the US constitution. They were outbid by a hedge fund boss and art collector, Kenneth Griffin.

Buyers from Asia accounted for 40% of sales in the contemporary art market in the year to June 2021, beating the US (32%) and the UK (16%). The Asian market has “effectively become the world’s primary zone for the exchange of contemporary artworks”, said the Contemporary Art Market Report.

According to Sotheby’s and Christie’s, Asian buyers account for a third of major international sales. Last year Sotheby’s broke records for sales in Asia, reaching $1.1bn by the end of November.

Another factor supporting this moment in the market was investors looking at “tangible works of art as stores of value” in a time of rising inflation, said Arnold.

She added: “I don’t think this is a bubble, not at all. The conditions in the world at the moment are such that art continues to be a way of storing value. And there is constant wealth creation and new buyers entering the market.”

There had been a 50% increase in millennials buying and bidding in Christie’s London sales in October, she said. “If the baby boomers were the ones buying aggressively in years past, we’re starting to see a generational shift, and that means that growth doesn’t only come from new markets like Asia, it also comes within the established markets as the younger generation steps in.”

Newsletter

Related Articles

Arab Press
0:00
0:00
Close
The negotiation teams of Trump and Putin meet directly, establishing the groundwork for a significant advance.
Israeli Minister Urges Hamas to Surrender and Depart from Gaza.
Iran Considers Moving Its Capital Due to Urban Difficulties
Israel and Hamas Finalize Sixth Exchange of Hostages and Prisoners During Continuing Gaza Ceasefire
Leaders of BRICS to Gather in Rio de Janeiro for July Summit
Muhsin Hendricks, a trailblazing openly gay imam, was killed in South Africa.
Trump's special envoy for hostage affairs cautions Hamas against challenging Trump before Saturday's deadline.
Two British citizens apprehended in Iran amid escalating tensions.
Israel Issues Threat of Military Action as Hostage Negotiations with Hamas Continue
Hamas Coordinates Worldwide Solidarity Marches in Reaction to U.S. and Israeli Initiative
Israel Warns of Ending Gaza Ceasefire Due to Hostage Situation
King Abdullah II Dismisses US Proposal to Relocate Palestinians, Commits to Welcoming Gaza Children.
Lebanon Installs New Government with Hezbollah's Impact on Key Ministries
Report: Iran Attempted to Assassinate Trump During Election Campaign
U.S. Authorizes $7.4 Billion Arms Sale to Israel
Iran's Supreme Leader Rejects Nuclear Negotiations with the U.S.
UN Chief Denounces Trump's Gaza Plan, Cautions Against Ethnic Cleansing
Pressure Intensifies for a Free Trade Agreement between the UK and GCC in Light of Economic Difficulties
Israel to Withdraw from UN Human Rights Council Due to Accusations of Anti-Semitism
EU Reaffirms Gaza's Essential Role in Future Palestinian State Following Trump's Proposal
Iranian Currency Reaches All-Time Low Amid US 'Maximum Pressure' Initiative.
UN Reaffirms Ban on Deportation from Occupied Territories Amid US Gaza Proposal
Palestinians Fear Repeat of 'Nakba' Amid Ongoing Crisis in Gaza
UAE Aids in the Exchange of 300 Prisoners Between Russia and Ukraine
Egypt Seeks Global Backing for Two-State Solution Following US Proposal for Gaza Plan
Trump's Suggestion to 'Seize Control' of Gaza Represents a Significant Shift in US Policy
French President is the first EU leader to extend congratulations to the new Syrian President.
Tunisian President Appoints New Finance Minister Amid Economic Crisis
Trump Suggests U.S. 'Takeover' of Gaza, Prompting Global Worries
Trump's Proposal for Gaza Provokes Global Debate
President Trump Suggests Moving Gaza's Palestinian Population
Aga Khan IV, Spiritual Leader and Philanthropist, Dies at 88
Erdogan and Syria's Sharaa Talk About Collaboration to Counter Kurdish Militants
Trump Suggests U.S. Control of Gaza Strip Amid Ongoing Conflict
Trump Resumes 'Maximum Pressure' Strategy to Limit Iran's Oil Exports.
Ex-British Soldier Sentenced for Espionage on Behalf of Iran and Fleeing from Prison
Gazans in Egypt Reject Displacement, Struggle with Return to War-Torn Home
Queen Rania Urges Protection of Children’s Rights at Vatican Summit
Hamas Officials Ready to Begin Negotiations for Phase Two of Gaza Truce
Trump Expresses Caution Over Gaza Ceasefire as Netanyahu Visits Washington
Oman to Host 18th Indian Ocean Conference on Maritime Security and Trade
Emir of Kuwait Meets BlackRock CEO for Talks on Investment Opportunities
Queen Rania of Jordan Calls for Global Action on Children’s Rights at Vatican Summit
Egyptian President El-Sisi Invited for White House Meeting Following Jordanian King’s Visit
Queen Rania Calls for Protection of Children’s Rights at Vatican Summit
Israeli Military Operations Continue on Lebanon Border Amid Ceasefire Tensions
Israeli Hostage's Release Highlights Uncertainty Over Family's Fate
Israeli Military Operations Escalate in Southern Lebanon Amid Hezbollah Tensions
Zayed Award for Human Fraternity Announces 2025 Honorees
Kuwait Anticipates a 12% Increase in Budget Deficit for the 2025-2026 Fiscal Year
×