Bittensor (TAO) Set for Historic Halving, but Analysts Warn of ‘Sell the News’ Risk
Bittensor (TAO) is approaching its first halving, which will cut daily token issuance by half, though analysts caution against a short-term 'sell the news' event.Summary
Bittensor (TAO) is days away from its inaugural halving, scheduled around December 14 when the circulating supply hits 10.5 million TAO, reducing daily token emissions from 7,200 to 3,600 TAO. This mechanism, similar to Bitcoin's, is designed to create scarcity toward a 21 million TAO cap and is generally viewed as a long-term bullish catalyst, reinforcing network value over time, as noted by Grayscale's Will Ogden Moore.
However, market sentiment remains cautious regarding immediate price impact. Some analysts warn of a potential "sell the news" event, suggesting the halving might not spark an immediate rally and could even lead to a retracement if key support levels are not held. Technically, TAO has recently shown weakening bullish momentum, slipping below a crucial support zone, leading to predictions of a potential drop toward $230 or even below $200 in the short term.
(Source：BeInCrypto)