Marco Verch / Flickr

Arthur Hayes, the CEO of cryptocurrency trading platform, BitMEX, has outlined a bearish thesis for the price action of Bitcoin (BTC) in the firm’s most recent market research report.

According to the report, Bitcoin is falling victim to its own stability as both traders and the media are beginning to lose interest. Hayes claims that Bitcoin’s mass adoption is directly tied to its volatility, calling it the “gateway drug” into the ecosystem.

“If volatility stays at these depressed levels, the price will slowly leak lower. For those of us who lived through the 2014-2015 bear market, we all await that nasty ass candle that breaks the soul of the bulls. Then, and only then, will volatility and the price ratchet higher,” said Hayes in the report.

Given its models, BitMEX sees significantly more pain to come for Bitcoin bulls.

“A 75% fall from $9,152 takes us close to $2,000. $2,000 to $3,000 is my new sweet spot but don’t tell Michelle Lee just yet,” continued Hayes.

BitMEX has been the target of investor scrutiny for Hayes’s actions in the past. Most recently, Hayes publicly called Ethereum (ETH) a “bigger shitcoin” than the dollar when prompting users to short the digital currency with ETH/USD perpetual swaps.

BitMEX allegedly has a significant impact on the price of Bitcoin, as it offers investors access to a Bitcoin derivatives market, which is different from spot trading in that it enables leveraged shorts up to 100x. Last August, when BitMEX entered into a period of scheduled maintenance, Bitcoin’s price spiked nearly $300 in a matter of minutes.

BTC is currently trading for $6,362.74, giving the coin a $110.44 billion market cap and making it 53.5% of the total crypto market and 56.4% of the AltDex 100 Index (ALT100), a benchmark index for the top-100 cryptocurrencies.

It would take a roughly 70% fall from current prices for Bitcoin to reach Hayes’s $2,000 price target.

More: From The BitMEX Research Desk
Related: Ethereum (ETH) Investors Accuse BitMEX CEO of Market Manipulation
Photo: Marco Verch / Flickr

Disclaimer: This article’s author has cryptocurrency holdings that can be tracked here. This article is for informational purposes only and should not be taken as investment advice. Always conduct your own due diligence before making investments.