Bittensor (TAO) Price Skyrockets 15% in 24 Hours Amidst Market Uncertainty Surrounding US Federal Reserve's Anticipated Interest Rate Cut Announcement

Bittensor (TAO) has blossomed as a top performer on both short-term and long-term charts, thanks to strong community support and ongoing ecosystem developments.

Bittensor’s (TAO) native token, TAO, saw a significant surge in price over the past 24 hours, rising from $289.14 to $334.65, a surge of over 15%. At the time of writing, the price had consolidated around the $323 price level, securing about 12% of its gains for the day, as shown by Coinfomania’s price tracker.

This period also saw a 64% spike in trading volume for TAO, with DeFi wallet addresses exchanging tokens valued at approximately $118.25 million. This activity drove the market capitalization of its 7.38 million token supply to $2.397 billion.

Bittensor’s native token has seen a broader scale of growth, gaining around 16% over the past week and month and a remarkable 487% over the past year. Despite this recovery, TAO remains 57% below its all-time high (ATH) of $767.68, recorded five months ago.

The recent price burst can be attributed to several factors. Investors were keeping a close eye on the US Federal Reserve’s announcement from the ongoing Federal Open Market Committee (FOMC) meeting. The market had anticipated an interest rate cut of at least 25 basis points (bps), which ended up being 50bps (0.5%) at the conclusion of the meeting yesterday. This Fed cut is currently impacting both the equity and crypto markets.

The Fed has made the first rate cut in four years as a result of the September 17-18 Federal Open Market Committee (FOMC) meeting. The FOMC landed on a substantial 0.50% decrease with up to another 0.50% in cuts forecasted before year end.

This sentiment is further highlighted by Alternative’s multifactorial Crypto Fear & Greed Index, which stood at 45 points, placing it in the “Fear” territory. Despite this, Bittensor’s gains showcase its resilience and adaptability in the face of market uncertainty, highlighting the strength of its community support.

A pseudonymous analyst on X, known as “The Smart Ape,” recently compared TAO to Bitcoin (BTC), stating, “TAO is like BTC on steroids” after reviewing its whitepaper.

$TAO is like $BTC on steroids!

Spent my weekend diving into the whitepaper and found some mind-blowing stuff!

Four-digit is just a matter of time, here’s the breakdown of what you need to know ?? pic.twitter.com/UtKMaqD0EM

Bittensor incorporates a Proof-of-Work model similar to Bitcoin. However, it has adopted a Proof-of-Stake (PoS) consensus mechanism. This combination has led to its unique Proof-of-Intelligence infrastructure, where nodes perform various machine-learning tasks to demonstrate their intelligence. The blockchain creates new blocks and rewards tokens based on the accuracy and value of the output generated by the nodes.

Additionally, TAO has a token cap of 21 million, similar to BTC, and employs a deflationary mechanism by halving every four years

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