- Bitensor tokens plummeted 16% in 24 hours, hitting a low of $389.
- The top artificial intelligence coin’s losses occurred amid profit-taking after a recent rally.
- The Fed’s hawkish stance, abuse of balancers, and AI-driven capital rotation are fueling risk-off sentiment.
Bitensor’s native token, TAO, fell 16% in the past 24 hours, outpacing the 9% decline in the overall Artificial Intelligence sector, hitting a low of $389.
Bittensor suffered losses as Bitcoin fell to nearly $100,000 and its market capitalization fell below $3.4 trillion.
Analysts remain bullish on BTC and the broader market, but investors are grappling with overlapping macroeconomic pressures.
Sector-specific headwinds are also at play, which could add to the decline due to panic selling.
Bitensor’s TAO plummets amid profit-taking
Bittensor is a decentralized machine learning protocol that encourages collaborative AI model training through blockchain.
The price of native token TAO has outperformed recently, capitalizing on the rally in AI stocks such as Nvidia.
However, the value of the token soared to $3.89, recording a 16% loss during the day.
Although the bulls tried to recover, the price has fallen from the high of $488 and remains at $400.
Meanwhile, trading volume rose 17% to $712 million, a scenario that reflects heightened panic selling.
As with the broader market, this comes as retail and institutional holders liquidate their positions due to fears surrounding the decline of the AI-driven rally.
The sell-off appears to have been exacerbated by profit-taking following Safero’s launch of Europe’s first staked TAO exchange-traded product (ETP).
After initially sparking a big rally, the bulls were unable to sustain the momentum.
Broad crypto market decline
The cryptocurrency ecosystem has suffered significant losses, with over $250 billion of market value evaporating in less than 24 hours, with the overall market capitalization ultimately shrinking by 5.8% to $3.4 trillion.
Bittensor’s underperformance against Bitcoin (down 6% to nearly $100,000) and relative performance against top altcoins highlights TAO’s vulnerability in a risk-off environment.
#BTC It’s at a critical level.
There are always multiple closes below 50W each cycle, so make sure the top is in.
I still think 2026 will be a bear market, similar to previous intermediate years, whether the top is in or not, or even if it goes a little further up. pic.twitter.com/4T9fAsQchs
— Benjamin Cowen (@intocryptoverse) November 4, 2025
Emotions are in the fear zone.
In this outlook, Ethereum is expected to fall 8% to $3,340, break through the key support at $3,550, and lose 18% this week.
Solana and XRP also posted significant losses, pushing total liquidations in the derivatives market to more than $1.13 billion.
Much of the optimism is a reaction to comments from Fed officials who reduced bets on a December interest rate cut.
Meanwhile, the U.S. spot Bitcoin ETF and Ethereum ETF recorded outflows for the fourth consecutive day due to the turmoil on Wall Street.
The Balancer cryptocurrency hack incident also worsened sentiment.
“The latest $128 million balancer exploit reminds us of something fundamental: Most smart contracts today rely on audit-based hope. Developers write complex code, auditors review it, and everyone hopes there are no hidden logic flaws. But hope is not a guarantee,” Bitcoin financial platform Blockstream noted in X.