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The price of the Bittensor token has plummeted by 17% in under six hours following a public severance of ties with the ecosystem by one of its leading subnet developers, leading to a bearish outlook for price predictions. The governance revelation that has prompted this selloff raises a more challenging question than many traders are currently considering.
On Thursday, Covenant AI, the team responsible for the Covenant-72B model, recognized as the largest decentralized LLM pre-training initiative ever, declared its departure from Bittensor.
LATEST: BITTENSOR FALLS 16% AS COVENANT AI LEAVES THE NETWORK DUE TO CENTRALIZATION ISSUES
Covenant AI (@covenant_ai) has withdrawn from Bittensor, citing worries regarding centralized governance.
The team asserted that governance is not genuinely decentralized in practice. They claimed that key decisions remain… pic.twitter.com/QlA4AoMWbG— BSCN (@BSCNews) April 10, 2026
Founder Sam Dare remarked that “the promise that attracted builders, miners, validators, and investors to this ecosystem is a falsehood,” accusing co-founder Jacob Steeves of exerting centralized control over Covenant’s subnet after it became too significant to overlook.
Steeves has yet to respond publicly. The announcement impacted the markets like a circuit breaker. TAO had experienced a 140% increase over six weeks, with 105% of those gains occurring since March 8, primarily driven by the success narrative of Covenant-72B and Grayscale’s application for a TAO Trust. This entire credibility framework has now developed a significant fissure.
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Bittensor Price Prediction: Can TAO Bounce Back?
Currently priced around $280, TAO finds itself in precarious technical territory. The immediate support level was $300, and the price is already trading below this threshold, indicating that this level has effectively been breached.
On-chain data corroborates the seriousness of the decline, with TAO’s 24-hour drop ranking among the steepest in the large-cap AI token sector. The rejection at $360 resistance on April 9 preceded a bearish MACD crossover, with sellers positioning themselves ahead of the news release.
Social dominance for TAO reached a one-year peak in early April; however, retail sentiment reflects only 1.5 positive comments for every negative comment, indicating that conviction in the previous rally was weaker than the price movements suggested.
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For TAO to recover towards $320–$330, it must reclaim $300 within 48 hours, contingent on a credible response from Steeves or Bittensor’s governance framework. However, ongoing silence from leadership and additional subnet exits could intensify selling pressure towards $250 or lower.
The parallel to other ecosystem selloffs instigated by significant internal departures suggests that recoveries may take weeks rather than days. Monitor the $300 level; this is the critical line.
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Bitcoin Hyper Attracts Early Movers as TAO Attempts to Recover
The governance risk has recalibrated TAO’s entire decentralization premium, highlighting the exact vulnerability that traders with longer memories have cautioned about. When a network’s core value proposition is labeled a falsehood by its most successful builder, capital rotation does not wait for validation. It shifts.
One destination drawing that redirected interest is Bitcoin Hyper ($HYPER), a Bitcoin Layer 2 initiative positioning itself as the first-ever BTC chain with Solana Virtual Machine (SVM) integration.
The proposition is structural: Bitcoin’s security and liquidity combined with sub-Solana-speed smart contract execution, overcoming BTC’s inherent limitations of slow transactions, high fees, and lack of programmability. No governance triumvirate. No subnet politics.
The presale has raised $32 million at a current price of $0.0136, with staking options available for early participants. The project’s Decentralized Canonical Bridge facilitates native BTC transfers.
Research Bitcoin Hyper before the next price step triggers.
The post Bittensor Price Prediction: Covenant AI Exits TAO, Forcing 16% Drop appeared first on Cryptonews.
