Bittensor (TAO) Drops 20% Every Day: What Triggered It

crypthub

2 days ago

Market Recovery

The cryptocurrency market rebounded strongly in the last 24 hours. Major altcoins such as Zcash and Dash surged 20‑30%, while Arbitrum and Hyperliquid posted modest 5‑6% gains. Meanwhile, several tokens slipped, with Bittensor (TAO) leading the declines.

TAO’s Sharp Decline

TAO fell about 20% from yesterday, touching $253 before stabilising near $263, its lowest level since mid‑March. Its market cap dropped to roughly $2.5 billion, pushing it to the 38th‑largest crypto. The plunge followed Covenant AI’s exit from the Bittensor network, citing centralized control, and a reported sale of 37,000 TAO worth over $10 million. Analysts noted a surge in sell volume the day before the announcement, suggesting a pre‑planned exit.

Technical Outlook

Despite the drop, some traders see a buying chance. TAO’s Relative Strength Index sits at 16, indicating the token is oversold and may rebound. However, experts caution that market information is uneven and positions can be predatory, urging caution before acting.