- Bittensor’s TAO is down about 4% today, April 16, 2026.
- The emergence of the Covenant AI caused the collapse.
- The price of the symbol has dropped to $ 240 from the level of $ 350 last month.
Bittensor TAO token is currently falling around 4% and the token price is hovering around $240 token. The price has fallen from $350 to $240 amid regulatory concerns, panic selling, and weakening market confidence. The token is not doing well compared to the main crypto market which is up by 1.2% CoinMarketCap price.
The selloff has also been exacerbated by the lack of liquidity and greater volatility away from the AI issue, as the crypto market has strengthened.
At press time, the price of the token stands at $239.02 with a drop of 3.74% in the last 24 hours according to CoinMarketCap.
What Caused the Fall
A big help recently was The emergence of the Covenant AI from the TAO ecosystem. The exit raised questions about Bittensor’s leadership and internal control.
Reports linked the sale of 37,000 TAOs by the founder of Covenant, a move that led to panic sales, withdrawals, and a loss of confidence among shareholders. This combination turned one event into the most powerful one in the entire market.
Why Has Sales Accelerated?
The second part that was added was a weakness that came from the market. TAO’s trading volume suddenly dropped, leaving the token vulnerable to price movements as sell orders hit the low book. According to the chart above, the trading volume decreased by 34.82% in the last 24 hours.
In this type of setup, even a short sale can be much lower than normal because there is no buying pressure to pick it up.
Conflicts of Authority Grow
At the same time, the problem has advanced the discussion about how Bittensor should be the ownership of the subnet and the reconciliation in the long term. The proposed arrangement, known as BIT-0011, would introduce a “lock value” and “trust,” allowing ownership of a subnet to shift among participants over a long period of time.
Supporters, on the other hand, argue that the move could reduce the risk of insiders disrupting the subnet by making sudden sales. Although the critics feel that this is still an art, and this may change before you use it.
Market Structure and Trends
Technically, TAO now it looks fragile as the price moves below $250, with the risk of getting closer to the $230-$235 zone if the selling continues. A recovery would require a definitive retracement of the $260 level along with strong volume. This could mean that consumers are entering with more confidence.
Until that happens, the market seems to see Bittensor’s TAO as a beta asset that is doing more for the trust of the ecosystem than it does for the crypto backdrop.
Investor’s perspective
Despite the drop, crypto advocates such as Michaël van de Poppe see the event as a stress test rather than a collapse. The influencer also said in X post that he is still in charge of the TAO and planned the move as a major environmental experiment that would lead to a stronger regime and a new expansion.
Those sentiments are now divided into three main phases, with a sharp reversal if sentiment stabilizes, a consolidation phase as confidence slowly rebuilds, or a downward spiral if subnets or reserves emerge.
What Happens Next
At this point, the important question is whether Bittensor can turn the crisis into a reform of the regime or whether the current weakness will be a long-term phenomenon.
If the network can calm the market, regain trust, and advance ideas like BIT-011, the improvement may be short-lived. If not, TAO may remain closed until buyers regain confidence and volume returns.
Also Read: Bittensor Price Prediction: Is $570 the Next Big Hit for TAO?
