Bittensor plunges 24% to $224 following halving event as AI token sector becomes worst performer at -21% amid market fear.
What's Happening:
$TAO crashes to $223.74 after 24% drop following halving event around December 14
Daily token issuance reduced triggering "sell-the-news" market reaction
AI sector worst performing category at -21% despite high social engagement
Market cap at $2.15B as decentralized AI infrastructure faces temporary headwinds
Why It Matters:
Bittensor's halving reduced supply issuance, similar to Bitcoin's four-year cycles, creating long-term scarcity. The short-term selloff represents typical "buy the rumor, sell the news" behavior rather than fundamental deterioration. As the decentralized AI infrastructure network incentivizing ML sub-network contributions, Bittensor's technical thesis remains intact despite price volatility. The extreme fear (index 29) in AI tokens creates asymmetric opportunity.
Technical View:
$224 represents capitulation following halving-induced selling. Support at $165-$200 range critical. Potential bounce to $320-$370 if key levels hold. With Fear & Greed at 29 and AI sector at peak pessimism, contrarian positioning could pay off when sentiment shifts.
🎯 Key Levels:
Support: $200 | Resistance: $320
24h Range: $220 - $245
💡 "Halvings create scarcity - the selloff is temporary, the supply reduction is permanent."
What's your take? Drop a 🔥 for bullish, ❄️ for bearish 👇
#Bittensor #TAO #AI #Halving #DYOR
Disclaimer: This content is for educational purposes only and should not be considered financial advice. Always do your own research (DYOR) before making any investment decisions.
