Bittensor Is Dumping… But Here’s Why I’m STILL Bullish on TAO

In this video, Royalty Crypto explains why he sees the recent TAO pullback as healthy rather than concerning, breaks down the macro catalyst driving it, and lays out a price target range for the next altseason.

What happened

• TAO hit a local high of $330 on May 11 and has since pulled back to ~$260.
• The cause: a classic “buy the rumor, sell the news” event around the Crypto Clarity Act.
• Last Thursday, the Senate Banking Committee voted 15–9 to advance the Digital Asset Market Clarity Act to the full Senate floor.
• Target: get the bill on Trump’s desk by July 4, which means a full Senate vote is likely within the next 2–3 weeks.

Why the dip is structural, not fundamental

• Leading into the vote, traders got greedy with leverage. The Bitcoin liquidation heatmap showed heavy longs stacked below $82K, and those got wiped as bears stepped in on the news.
• Now the setup has flipped: bears are stacking shorts above current price. Royalty Crypto expects the bulls to squeeze those positions in the coming days, potentially providing the fuel Bitcoin needs to break $82K resistance.
• If that breakout happens, he expects TAO to follow with an unreal parabolic bull run.

Why TAO specifically (the relative strength case)

• TAO looks like it’s “sideways and boring,” but it’s actually been stronger than the average altcoin.
• Most alts hit local lows in early February and have been chopping sideways since. TAO rallied hard in late March and has held those gains; the few alts that did rally recently have already given everything back.
• The structural bull case: TAO is a working decentralized AI marketplace with real startups (subnets), not a narrative-only AI token. AI is the hottest sector in finance, and that would very likely hold for the next decade.

The price target

• Current market cap: just under $3B.
• Altseason target for TAO: $30B–$50B market cap, translating to a 10–15x from today’s levels.
• Timeline estimate: 6–18 months, with the caveat that this is a best-case scenario, not a guarantee. He’ll be taking profits on the way up rather than diamond-handing.

The bearish caveat worth acknowledging

• Only about 50% of TAO supply is in circulation.
• Inflation runs 12–15% per year for the next few years before the next halving (every 4 years, like Bitcoin).
• No big unlocks to worry about, but >10% annual inflation does raise the risk profile. He thinks the project will outperform its inflation, but viewers should factor it in.

Conclusion

This dip is a leverage flush masquerading as a trend reversal. The fundamentals are all moving in the right direction. He’s positioning for the breakout, not the breakdown.

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Disclaimer: This content is for informational and educational purposes only and does not constitute financial, investment, or trading advice. Nothing shared here is a recommendation to buy, sell, or hold any cryptocurrency, token, or asset. Crypto markets are highly volatile and carry significant risk. Always do your own research (DYOR) before making any investment decisions.