The Bittensor TAO token has experienced a significant decline, dropping 16% in just 24 hours to a low of $3.89. This downturn comes amidst profit-taking following a recent price surge and reflects broader trends within the artificial intelligence sector.
TAO Token Plummets Amid Profit-Taking
Bittensor operates as a decentralized machine learning protocol, facilitating collaborative AI model training through its blockchain. Following previous stellar performance, particularly in connection with AI stocks like Nvidia, the TAO token has now witnessed a sharp devaluation.
The price of TAO has sunk to $3.89, marking a notable 16% intraday loss. Although bullish efforts have aimed to push the price back towards $4.00, it struggles to recover from recent highs of $4.88.
Transaction volumes surged by 17% to $712 million, indicating heightened panic selling among investors. This trend reflects broader market concerns as both retail and institutional stakeholders begin liquidating positions due to fears surrounding a slowdown in AI-related recoveries.
The recent drop has intensified due to profit-taking actions following the launch of the first European-traded product (ETP) for staked TAO by Safello, which had initially sparked a significant rally. However, buyers failed to sustain the momentum.
Wider Cryptocurrency Market Retreats
The cryptocurrency ecosystem has faced substantial losses, with over $250 billion wiped from market value in 24 hours, leading to a 5.8% contraction of the overall market cap, now at $3.4 trillion.
Compared to Bitcoin, which has fallen about 6% to nearly $100,000, Bittensor’s underperformance underlines the vulnerabilities of the TAO token amidst a risk-averse environment.
#BTC is at a critical level.
Multiple closes below the 50W would confirm the top being in as it always has each cycle.
Regardless of whether the top is in, or if we go slightly higher, I still think 2026 will be a bear market, just like all prior midterm years. pic.twitter.com/4T9fAsQchs
— Benjamin Cowen (@intocryptoverse) November 4, 2025
The prevailing sentiment remains one of fear, with Ethereum declining by 8% to $3,340, breaking key support at $3,550 and erasing 18% over the past week. Other notable declines have been seen in Solana and XRP, while liquidations in derivative markets exceeded $1.13 billion.
This pessimistic outlook largely stems from comments made by Federal Reserve officials, who have tempered expectations for rate cuts in December. Coupled with the recent hack of the Balancer crypto protocol, which further unsettled market sentiment, these factors have contributed to a challenging landscape for investors.
“The recent $128 million exploit at Balancer serves as a critical reminder: many smart contracts today rely on hope based on audits. Developers write complex code, auditors review it, and everyone hopes there are no hidden logical flaws. But hope is not assurance,” remarked Bitcoin financing platform Blockstream on X.
John is a seasoned journalist at The Bothside News, specializing in balanced reporting across news, sports, business, and lifestyle. He believes in presenting multiple perspectives to help readers form informed opinions. His work embodies the publication’s philosophy that truth emerges from examining all sides of every story.
