Recently, the market for Bittensor has been extremely hot. This AI concept cryptocurrency has seen a significant surge in a short period, attracting a lot of attention. What is actually driving this upward trend? I think it's necessary to clarify the thinking.

From several perspectives, the actions of institutions are the first to be noticed. Traditional financial giants like Grayscale are preparing regulated investment products related to TAO, possibly structured as Trusts or ETFs. Once such news spreads, the market reacts very sensitively—because what does this mean? It indicates that TAO might really enter mainstream financial investment channels, that large institutional funds are waiting in the wings, and that the project's compliance and recognition are stepping up to a new level.

In the crypto space, the power of "institutional expectations" often exceeds expectations. Even before the product is officially launched, pre-market anticipation can trigger a rush of capital.

Another key factor is the contraction of supply. Bittensor has a clear halving mechanism. After the recent halving, the daily new issuance of TAO has significantly decreased. The direct effect is that selling pressure in the market has eased considerably, and the inflation rate has dropped accordingly. When supply shrinks while demand remains steady or even increases, prices tend to have greater elasticity and room to rise—this logic is actually consistent with Bitcoin's historical performance before and after each halving.

Funds and sentiment cannot be ignored either. Once market participants see these positive signals stacking up, sentiment quickly heats up, and capital naturally flows in, further pushing up the price. This self-reinforcing process can generate quite substantial gains in the short term.