Bittensor Ahead of First Halving: Decentralized AI Meets Bitcoin Mechanism

Bittensor Prepares for Historic Halving

The crypto project Bittensor, which focuses on artificial intelligence, is facing a significant milestone: On December 15, 2025, the very first halving of the TAO token will take place ^[1]. Daily emissions will be cut in half from approximately 7,200 to about 3,600 coins ^[1].

Similar to Bitcoin, Bittensor has a maximum total supply of 21 million units ^[1]. While Bitcoin's halving has by now lost its dramatic effect on new supply and thus price, Bittensor is still in its infancy ^[1].

Parallels to Bitcoin 2012?

The question of whether the supply reduction in this flagship project of the AI subsector could trigger a similar price explosion as Bitcoin experienced in 2012 is currently occupying the crypto community ^[1]. In the event of a year-end rally in the crypto market, Bittensor in particular could push to the forefront thanks to the combination of AI boom and halving hype ^[1].

Experts remain divided: While some believe in an explosion of the TAO price similar to Bitcoin in 2012, others warn against overvaluation of the project ^[1].

Bitcoin in Extreme Volatility Phase

Parallel to developments at Bittensor, the Bitcoin market is showing unusual patterns. Data from Cointelegraph Markets Pro and TradingView documented flat BTC price movements over the weekend with strong horizontal resistance ^[2]. Repeated attempts to break higher failed during the week ^[2].

"Extreme low volatility setup. Means a directional move around the corner," wrote trader and analyst Aksel Kibar in his latest post on X ^[2]. Kibar offered two potential scenarios for the volatility breakout: a breakdown from the current bear flag formation on the daily chart as well as a rise to $95,000 ^[2].

Warning of Bearish Phase

The onchain analytics platform CryptoQuant warned in its latest findings that the Bitcoin bear market is already underway ^[2]. A combination of downward-sloping Simple Moving Averages (SMAs) and a price below key trendlines formed the basis for a grim new crypto market forecast by analyst Pelin Ay ^[2].

"Price reactions are being sold at declining moving averages, meaning these averages have turned into dynamic resistance levels," Ay wrote in a Quicktake blog post on Sunday ^[2]. Attempts to break higher occurred with low volume, showing that buyers lack strength ^[2].

Ay warned: "A deeper bear market phase, potentially toward the $50K region, is likely before the next major upward move" ^[2]. Even with Ethereum, which has recovered more strongly from recent long-term lows, there is little reason for optimism ^[2].

Buying Volume Without Conviction

"During recovery attempts, buying volume fails to confirm upside moves," Ay noted ^[2]. Selling volume on red candles is significantly stronger than buying volume on green candles ^[2]. Bitcoin is currently in a reaction phase within a bear market, the structure remains bearish and upward movements lack conviction ^[2].