Bittensor (TAO) Faces Bearish Momentum Amid AI Market Volatility

Bittensor (TAO) is trading significantly below key moving averages, confirming a bearish trend with oversold conditions. The AI crypto sector has declined over 20% due to concerns about Big Tech's AI infrastructure investments and broader macroeconomic uncertainty according to market analysis. Bittensor introduced subnet-specific tokens and reduced inflation to 12.5%, aiming to attract institutional investment.

Bittensor (TAO) is experiencing strong downward momentum, trading well below its 20-day, 50-day, and 200-day moving averages. This technical breakdown is reinforced by indicators like RSI (24.98) and CCI (-163.22), which highlight deep oversold conditions. Analysts suggest that a rebound would require a price move above $180.

The broader AI crypto market has also faced significant losses, with TAO, NEAR, ICP, and RENDER all recording double-digit declines. This sell-off is attributed to concerns over Big Tech's growing AI infrastructure investments. The combined market cap of AI-focused cryptocurrencies dropped by over 40% in the past week, raising questions about the sector's long-term viability.

In contrast, Bittensor has been working to differentiate itself through structural upgrades and institutional adoption. In early 2025, TAO introduced subnet-specific tokens, allowing investors to allocate capital to high-utility subnets like Chutes AI. This initiative, combined with the 2025 halving that reduced inflation to 12.5%, aims to enhance scarcity and redirect emissions. Institutional confidence is also growing, with the introduction of products like the Staked TAO ETP and pending Grayscale trust filing according to industry reports.

What Is the Current Technical Outlook for Bittensor (TAO)?

TAO is currently in a structural downtrend, with all key moving averages above the price. The RSI, MACD, and ADX all confirm bearish momentum, and the price remains under pressure despite signs of potential correction. Analysts emphasize that a sustained move above $180 and stabilization near $230 are necessary for a reversal. The RSI has returned to neutral levels, suggesting some recovery in buyer interest, but the overall trend remains bearish.

How Does Bittensor Compare to the Broader AI Crypto Market?

The AI crypto market, including TAO, has faced significant underperformance, with market cap losses exceeding 40% in the past week. This decline reflects broader concerns about Big Tech's AI investments and liquidity challenges. Unlike traditional AI firms, which benefit from institutional support and regulatory clarity, crypto AI projects like TAO rely on retail-driven funding. However, Bittensor has attempted to address these challenges through structural upgrades and performance-based emission models.

What Institutional and Technical Developments Are Expected for Bittensor?

Bittensor has introduced several developments to improve its AI infrastructure and attract institutional investment. The Dynamic TAO 2025 upgrade included subnet-specific tokens and performance-based emissions, allowing investors to target high-utility AI projects. The platform's decentralized AI infrastructure, including subnets like Chutes AI, offers a peer-to-peer environment for AI model training and validation. Institutional credibility is also growing, with the introduction of the Staked TAO ETP and a pending Grayscale trust filing according to industry reports. These developments aim to enhance long-term growth prospects and attract capital from institutional investors.