Bittensor TAO extended its rally this week, climbing over 37% in seven days to trade near $466. This makes it one of the top-gaining large-cap assets, even though the overall market downturn saw Bitcoin fall to around $111k today.
The AI-powered crypto network is benefiting from growing institutional interest and a new trust filing by Grayscale, signaling a fresh wave of legitimacy for the decentralized AI sector.
The rally comes as traders eye Bittensor’s upcoming halving event, expected in under two months, which will reduce token issuance and further tighten supply.
Grayscale Bittensor Trust Filing Adds Institutional Legitimacy
On October 14, Grayscale Investments filed a Form 10 with the U.S. SEC for the Grayscale Bittensor Trust, mirroring its earlier Bitcoin and Ethereum trust structures.
If approved, the filing would enable OTC trading of TAO shares and reduce private placement lockups from 12 to 6 months, key improvements for liquidity and institutional accessibility.
Grayscale’s involvement also introduces audited financial reporting and a regulated investment vehicle for funds restricted from holding native tokens directly.
Analysts note that Grayscale’s brand historically acts as a market-validation catalyst. When its Bitcoin Trust (GBTC) launched in 2020, it preceded one of the largest institutional inflows into crypto. The same playbook may unfold for TAO if the SEC responds positively within the expected 30–90-day window.
Public Companies Increase TAO Holdings
Further bullish momentum stems from TAO Synergies (TAOX), a Nasdaq-listed firm that raised $11 million on October 13 to expand its TAO treasury. The company now holds 42,111 TAO (≈ $19.5 million), while competitor xTAO Inc. maintains 41,538 TAO staked for a roughly 10% annual yield.
By locking TAO into staking contracts, these public entities effectively reduce circulating supply, echoing MicroStrategy’s Bitcoin-accumulation model. With 10.08 million TAO currently circulating out of a 21 million max supply, supply scarcity is amplifying each new wave of demand.
TAOX’s stock has soared 60% over the past month, suggesting traditional-market investors are increasingly pricing in the value of its on-chain exposure.
Bittensor Price Outlook: Bulls Eye Breakout Above $500 Level
According to TradingView’s one-day technical summary, TAO/USDT holds a “Strong Buy” rating, showing 18 buy signals against just two sell indicators. Momentum remains firm, with the RSI at 72.5, nearing overbought levels but not yet flashing reversal risk.
All major exponential moving averages (10–200) sit below the current price, reinforcing a clear uptrend. MACD and momentum readings confirm continued strength, while a 19.1% volume-to-market cap ratio signals robust participation. TAO trades around $465, with daily volume up 58% to nearly $900 million.
Popular crypto trader DonaXbτ highlighted that Bittensor TAO is “getting close to the most important resistance level,” a zone that triggered multiple rejections in prior rallies. A clean breakout above $500 could mark the official transition into a bull market, confirming what chartists call wave 3 of its impulsive structure.
Meanwhile, TECA, another analyst with almost 190k X followers, noted that TAO’s “momentum reset” and “limited supply” setup make for “one of the cleanest technical structures post-crash,” with renewed accumulation above pre-dip levels.
Short-term traders are watching $430 as near-term support and $520 as the next major resistance. A close above that range could extend the rally toward $600, while a rejection could trigger a retest of $380–$400.
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