- Tensions around the Strait of Hormuz have affected the entire crypto market.
- Bittensor’s native token TAO is down by almost 1.5% in the last 24-hours.
- Investors also booked their profits from the recent gains and rotated their money in other AI tokens.
Bittensor (TAO) slipped almost 1.5% in the last 24-hours. With this dip, the price of the TAO token is hovering around the $270 mark. This downturn is a part of the broader crypto market fall which is fueled by escalating US-Iran tensions around the Strait of Hormuz. This geopolitical flare-up has sparked the prices of oil and has put significant pressure on assets such as cryptocurrencies.
While TAO is down by 1.5%, the broader crypto market is down by almost 0.7% and Bitcoin is down by 0.6% as per CoinMarketCap. This data also shows that TAO has outpaced the broader crypto market’s and Bitcoin’s dip.
At the time of writing, the price of TAO token stands at $271.30 with a drop of 1.43% in the last 24 hours as per CoinMarketCap.
Moreover, it has also been observed that the token has also underperformed amongst the AI tokens, which are currently experiencing gains. It seems like the investors are shifting their focus and rotating the capital into tokens like SIREN.
Macro Headwinds Drive Risk-Off Sentiment
As of now, geopolitical risks are dominating the narrative. Tensions over the Strait of Hormuz, which is a check point for about 20% of global oil, have forced investors to move away from risk assets such as cryptocurrencies. This is also the reason why the Crypto Fear & Greed Index is down to 24 as per CoinMarketCap.
Donald Trump gave Iran 48-hour ultimatum to reopen the Strait of Hormuz or face strikes. To this ultimatum, Iran has responded aggressively and warned that it could fully shut the passage and target US assets if attacked.
Adding to all this drama, Iran’s parliament speaker warned financial entities against buying US Treasury bonds and threatened with potential retaliation. This has further intensified the risk-off sentiment.
This entire situation has caused oil price spikes amid fears of supply which has increased sell-off in equities and crypto. Along with the entire crypto market, TAO has also seen a steep drop which indicates higher sensitivity to the market pressure.
Profit-Taking Follows Endorsement Surge, Fuels AI Rotation
TAO’s momentum in the last week peaked as the project was endorsed by big names like Chamath Palihapitiya and Jensen Huang during a podcast. This endorsement led to a significant surge.
These high profile nods highlighted Bittensor’s edge in decentralized machine intelligence, which drew in a good amount of capital.
As the token hit this high, investors began taking profits. This points to a shift in momentum, with capital rotating into newer AI tokens. While the sector surged, TAO lagged as attention moved elsewhere.
According to CoinMarketCap, SIREN stood out. In the last 24-hours, it jumped more than 90% and was driven by its AI agent launch.
According to Ali Martinez, Bittensor had rallied strongly on the back of AI developments like Covenant-72B. As the price rallied on March 23, the sentiment had reached an overheated level.
Data from Santiment showed social sentiment at its highest since the October 2025 top, a clear sign that the trade may be getting crowded. It has been observed that such conditions usually lead to short-term corrections, even within a broader bullish trend.
TAO Tests Key Support Zone
Bittensor’s native token TAO is hovering around a crucial $270 level, and this support level is a key decision point. If the price of the token holds higher than this support then the price of the token could hit the $276-$282 range.
However, if there is a break below this support level, then the price of the token can drop down to $265 as broader market pressure persists.
Also Read: Bittensor Surges 12% Amid AI Hype & Templar Subnet Growth
