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Bittensor (TAO) Faces Major Price Crashes and Governance Crisis in April 2026

TAOSunday, April 12, 2026

36 articles analyzed by AI / 43 total

Key points

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  • Bittensor's network experienced a major destabilizing event in April 2026 when Covenant AI, a key project within the ecosystem, exited the network. This departure caused rapid and substantial drops in TAO's price, with declines reaching up to 25% within 24 hours and a $67 per token plunge, fueling governance fears and investor panic.[Google News Bittensor Search][Google News Bittensor Search][Google News Bittensor Search][Google News Bittensor Search]
  • Amid the crisis triggered by Covenant AI's exit, Bittensor suffered further instability demonstrated by a 20% daily collapse in TAO's price around April 10, 2026. The fall was exacerbated by a large dump of 37,000 TAO tokens, placing additional pressure on the token and raising concerns about its short-term price direction.[Google News Bittensor Search][Google News Bittensor Search]
  • Institutional investors showed increased confidence in Bittensor despite recent turmoil, as evidenced by Grayscale raising its exposure from 31% to 43% in early April 2026. This significant portfolio adjustment indicates growing institutional interest and belief in TAO's long-term potential.[Google News Bittensor Search]
  • Retail investor enthusiasm has played a pivotal role in Bittensor's price dynamics, with the token surging 140% by March 2026. This rally highlights heightened retail engagement and increased trading activity that contributed to TAO's rapid value appreciation prior to the recent downturn.[Google News Bittensor Search]
  • Technical analysis tools specific to Bittensor suggested potential price recoveries in April 2026, with a rare 'Buy' indicator flashing on multiple occasions correlating to prior short-term price jumps of 9% and 19%. These signals imply possible bullish momentum despite ongoing price volatility.[Google News Bittensor Search]
  • Internal conflicts within Bittensor’s leadership have further complicated the network's stability, with Co-Founder Jacob Steeves publicly accusing Samuel Dare of a 'deep betrayal' following the TAO price collapse in April 2026. This incident has intensified community concerns over governance integrity and project cohesion.[Google News Bittensor Search]

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