Bitcoin trading has entered a bear market with prices falling 20 percent from recent highs, slipping below where they were at the time of President Trump’s inauguration.

The price of the digital currency dropped below $95,000 on Friday after topping $126,000 in October.

Bitcoin has seen weeks of weakening demand and heavy sell-offs by long-term holders, Bitcoin magazine reported.

CoinMarketCap’s Fear and Greed Index, which analyzes market sentiment on cryptocurrency investments, is nearing Extreme Fear levels.

A year ago it was sitting at Extreme Greed levels as traders expressed optimism for the crypto industry ahead of President Trump’s return to the White House.

Bitcoin is now trading well below the $109,000 price where it stood on Inauguration Day in January.

“It looks like pure exhaustion across the board,” the founder of blockchain firm Codex, Haonan Li, told Business Insider.

Volatility is common for Bitcoin, so many industry observers are not concerned about the drop.

The co-founder of crypto firm Animoca, Yat Siu, says that large amounts of institutional capital have entered crypto markets this year. Institutions don’t necessarily trade in the same way as long-term Bitcoin holders.

“They’ll look at [the market downturn] more as a buying opportunity,” Mr. Siu tells CNBC.

Part of the drop is tied to lower expectations of a December rate cut by the Federal Reserve. When interest rates come down, that boosts liquidity and investors plow more money into riskier assets like crypto.

Forecasters are putting the chance of a rate cut next month at only about 50 percent. That is down from nearly 90 percent at the start of the month.

“There’s less money in the system,” Mr. Siu says. That leads to investors “selling certain things off in order to basically deal with other shortfalls or concerns that they might have because there’s a retraction broadly.”