- Bittensor’s TAO is down ~4% today, April 16, 2026.
- The exit of Covenant AI led to the downfall.
- The price of the token fell to $240 from the $350 level last month.
Bittensor’s native token TAO is currently facing a decline of around 4% and the token price is hovering around the $240 mark. The price fell from $350 to $240 amid governance concerns, panic selling and weak market confidence. The token’s performance is poor compared to the broader cryptocurrency market which is seeing a 1.2% rise according to CoinMarketCap.
The sell-off was also amplified by lower liquidity and a broader shift away from the AI narrative, even as the broader cryptocurrency market remains firmer.
At press time, the token is priced at $239.02 with a 3.74% decline in the past 24 hours according to CoinMarketCap.
What led to the decline?
It has been the main catalyst recently Exiting the Covenant for Amnesty International From the TAO ecosystem. This exit raised questions about management and control within Pettensor.
Reports linked the move to the Covenant founder’s sale of 37,000 TAO, a move that led to panic selling, liquidation and a broader loss of confidence among stockholders. This combination turned a single event into a stronger chain reaction throughout the market.
Why accelerated selling?
The second layer that was added was a weakness that came from the market structure. TAO’s trading volume suddenly dropped, making the token more vulnerable to huge price movements when sell orders hit a weak order book. According to the screenshot above, trading volume has decreased by 34.82% in the last 24 hours.
In this type of setup, even a modest selling can result in a larger than normal decline because there is less buying pressure to absorb.
Intensifying the debate on governance
At the same time, the crisis has accelerated debate over how Bittensor will handle subnet ownership and long-term alignment. The draft proposal known as BIT-0011 would introduce a “locked stake” and “stake,” allowing ownership of the subnet to shift toward participants who commit capital for longer periods.
On the other hand, proponents argue that this move could reduce the risk of insider founders destabilizing the subnet by suddenly selling out. While critics point out that this is still just a draft, this may change before implementation.
Market structure and forecasts
Technically, Tao It now looks fragile as the price hovers below the $250 area, with a near-term downside risk towards the $230-235 area if the selling continues. A recovery will likely require a convincing retracement of the $260 level coupled with stronger volume. This may indicate that buyers are finally stepping in with more confidence.
Until that happens, the market appears to be treating Bittensor’s TAO as a high-beta asset that reacts more to ecosystem confidence than to the broader crypto backdrop.
Investor sentiment
Although there was a decline, crypto influencers like Michael van de Poppe view the event as a stress test rather than a collapse. The influencer also said in Share X He still holds a senior position at TAO and frames the move as a key test of the ecosystem that could ultimately lead to stronger governance and renewed momentum.
This view is now split across three broad paths, with a sharp recovery if sentiment stabilizes, a consolidation phase if confidence is slowly rebuilt, or deeper downside if more subnetworks or shareholders exit.
What happens next
As of now, the key question is whether Bittensor can turn this crisis into a governance reset or whether the current weakness will become a longer downgrade event.
If the network can calm the market, restore confidence and deliver proposals like BIT-011, the correction could be temporary. If not, the TAO may remain trapped in a bearish range until buyers regain their conviction and volume returns.
Read also: Bittensor Price Forecast: Is $570 the next big target for TAO?
