Bittensor Price Drops Amid Sector-Wide AI Token Correction

The price of Bittensor (TAO) has dropped by 3.1% in the last couple of hours, but this move is part of a sector-wide correction in AI tokens.

A recent market recap notes that the AI sector, including NEAR and TAO, has entered a 'local correction' due to quarter-end or start liquidity positioning and ETF-related flows in AI names such as NEAR. This correction is not specific to Bittensor itself but rather a result of tactical reduction in AI exposure after a strong run.

The sector's weakness is linked to the launch of Bitwise's spot NEAR ETF, which saw initial selling in NEAR despite being a positive structural catalyst.