Why Did Bittensor Crash More than 20% Following Its Halving This Week?

Core Viewpoint - Bittensor (CRYPTO: TAO) has completed its halving event, which typically would lead to a price surge, but instead, the token has declined by 22.1% over the past week, indicating negative momentum in both short-term and long-term perspectives [1][7]. Group 1: Halving Event Impact - The halving event reduces the rewards for mining and validating transactions by half, which is expected to improve supply and demand fundamentals, providing a price floor for Bittensor's token [2]. - Despite the halving event's intention to increase scarcity and stabilize future value, Bittensor's price has not reacted positively, reflecting a disconnect between expected and actual market behavior [5][8]. Group 2: Market Sentiment and Performance - The phrase "buy the rumor, sell the news" is relevant to Bittensor's recent price action, as the excitement surrounding the halving did not translate into sustained price increases [4][5]. - Bittensor's consistent decline this year is attributed to broader concerns regarding AI valuations, affecting both high-profile equities and blockchain projects like Bittensor [6]. - The lack of new AI application launches has contributed to Bittensor's inability to reach its previous peaks in 2024, raising concerns about its future performance [6].