TAO Price Rises 12% After Hack Resolution, Potential Breakout Toward $476

• The hack, affecting 32 TAO holders, was linked to a former Bittensor employee, as detailed in on-chain investigator ZachXBT’s analysis.

• Community sentiment shifted bullish, with 86% of investors optimistic, up from 74% earlier in the week.

• Open interest in perpetual futures rose 9.95% to $26 million, while spot netflows showed $5.25 million in profit-taking by short-term holders.

Discover how Bittensor TAO price surged 12% post-hack resolution. Explore investor confidence, market inflows, and potential breakout to $476. Stay updated on AI crypto trends with COINOTAG.

What Caused the Recent Bittensor TAO Price Surge?

Bittensor TAO price jumped 12% in the past 24 hours following the resolution of an investigation into a $28 million hack from earlier in 2024. This development, detailed in a post-mortem by on-chain investigator ZachXBT, identified a former Bittensor employee as the perpetrator, affecting 32 holders. With a civil lawsuit now in progress, the clarity has reignited market interest, positioning TAO near its previous yearly all-time high after a prior 44% drawdown.

How Has the Hack Investigation Impacted Investor Sentiment?

The investigation’s outcome has significantly boosted confidence in Bittensor’s security measures. ZachXBT’s analysis, shared publicly, provided transparency that alleviated concerns among stakeholders. Community sentiment on platforms like X reflected this shift, with bullish investors rising from 74% on October 17 to 86% shortly after. This positive momentum has translated into increased trading activity. According to data from CoinGlass, the perpetual futures market saw open interest climb 9.95% to $26 million, indicating sustained interest from derivatives traders. Funding rates remained positive, underscoring a predominance of long positions as participants anticipate continued appreciation.

Source: CoinGlass

Despite the optimism, spot market dynamics reveal some caution. Over the last two days, net outflows reached $5.25 million as short-term holders locked in gains, potentially introducing mild selling pressure. This balance between bullish derivatives activity and spot profit-taking highlights the nuanced recovery path for Bittensor TAO. Official statements from the Bittensor team emphasize ongoing enhancements to protocol security, further supporting long-term trust.

Perpetual Market Shows Strength Amid Recovery

The derivatives segment for TAO has demonstrated resilience, with $25 million in new inflows bolstering positions. CoinGlass data indicates that the positive funding rate environment favors longs, aligning with the broader AI token sector’s upward trajectory. This influx coincides with TAO’s approach to key resistance levels, where sustained volume could catalyze further gains. Market analysts note that such capital rotation often precedes breakouts in decentralized AI projects like Bittensor.

Source: CoinGlass

From a broader perspective, Bittensor’s role in the AI-crypto intersection continues to attract institutional interest. Statistics from on-chain analytics show a 15% increase in unique wallet interactions post-announcement, underscoring genuine engagement rather than speculative hype. Experts like those at decentralized finance research firms highlight TAO’s potential as a leader in machine learning networks, with its subnet architecture enabling scalable AI computations.

Frequently Asked Questions

What triggered the 12% Bittensor TAO price increase after the hack?

The surge was triggered by the resolution of the $28 million hack probe, where ZachXBT identified a former employee as responsible. This transparency led to a civil lawsuit, boosting confidence and drawing $25 million in derivatives inflows within 24 hours.

Is Bittensor TAO poised for a new all-time high in 2025?

Yes, TAO is trading near $447 resistance, and a breakout could target $476 before aiming for a yearly high of $588. Positive RSI indicators and rising open interest support this potential, though spot profit-taking may cause temporary pullbacks.

Key Takeaways

• Hack Resolution Drives Recovery: The identification of the perpetrator in the $28 million incident has restored trust, leading to a 12% TAO price gain and heightened community sentiment at 86% bullish.
• Derivatives Market Bullish: Open interest up 9.95% to $26 million with positive funding rates signals strong trader conviction for further appreciation amid AI sector momentum.
• Technical Outlook Positive: Near $447 resistance, TAO eyes $476 breakout; monitor RSI for confirmation, but watch $5.25 million spot outflows for short-term volatility.

Source: TradingView

Conclusion

The Bittensor TAO price surge underscores the resilience of AI-driven cryptocurrencies amid security challenges, with the hack investigation’s resolution playing a pivotal role in investor sentiment and market inflows. As TAO approaches critical resistance levels like $447, supported by data from sources such as CoinGlass and TradingView, the asset’s trajectory could redefine benchmarks in the decentralized AI space. COINOTAG will continue monitoring developments; investors should conduct their own due diligence and consider the volatile nature of crypto markets for informed decisions. Published October 19, 2025, by COINOTAG. Last updated October 19, 2025.