It turns out Andy Warhol is no match for Jay Powell. Expensive paintings are proving to be more sensitive to interest-rate hikes than even sophisticated investors expected.

A bubble at the top of the art market has burst. Auction sales of paintings that cost more than $10 million fell 44% last year, and continue to be depressed in 2025, data from ArtTactic shows. The shift in the market was clear at Sotheby’s New York auction in May, when a sculpture by Alberto Giacometti with a $70 million asking price didn’t attract a single bid and had to be pulled from sale.