Bittensor and NEAR Drop Up to 19% as AI Spending Concerns Hit Sector

Bittensor (TAO) and NEAR Protocol (NEAR) have fallen as much as 19% over the past two weeks, a decline that sharply contrasts with Bitcoin's (BTC) 4% drop. The selloff intensified after Meta Platforms reported earnings that raised concerns about the capital required for artificial intelligence development.

Over the 14-day period, TAO lost 12.9% to trade around $251, while NEAR dropped 19.4% to approximately $4.53. Bitcoin's decline over the same stretch was 3.7%. On October 24, 2026, both assets hit new monthly lows. TAO closed just below $251, marking its lowest monthly close and a 30-day loss of 23.5%. NEAR sank to about $4.24, its lowest point in a month. In terms of longer-term performance, TAO trades 66.9% below its all-time high, while NEAR is down 77.9%.

The immediate trigger for the latest downturn was a selloff in technology stocks following a report on AI spending that surfaced on October 22. Meta Platforms fell about 7% that day despite beating revenue expectations. Traders at Wells Fargo noted that Meta's comments regarding its need for AI funding caused its shares to roll over, contributing to a 2.6% drop in the Nasdaq Composite. Jensen Huang, CEO of NVIDIA, added to market uncertainty by stating in an interview that while demand for AI-related cloud services is "off the charts," available investment capital is limited.

As investors shifted toward safer assets like U.S. Treasuries, the 10-year yield fell to 4.97%. At the same time, Brent crude oil prices jumped by 4% to approximately $113 per barrel amid reports of renewed strikes against Iran. The pressure on AI coins had begun earlier in the month; on October 8, rising oil prices and tech-stock anxiety drove TAO down from about $291 to $269 and NEAR from around $5.33 to $4.46, both at their highest trading volumes of the month.

The weakness extends beyond these two assets. NVIDIA declined by 7.8% from September 28 to October 23, though it remains up 15.3% in 2026. Fetch.ai fell 27.9% over the month, indicating broader sector stress. Bitcoin has held its ground better due to its deeper market and status as a store of value, whereas TAO and NEAR prices are closely tied to AI expectations.

NEAR had more to lose after surging 204.5% in 2026 and 138.7% over the last 60 days. Bitwise began trading a spot NEAR ETF on September 29, yet the coin remains down 7% over the last 30 days. TAO faces supply pressures from its subnet emissions, where miners and validators earn new tokens that may be sold as buyer interest wanes, even after a December 2025 halving cut daily issuance in half.

Technical levels show TAO falling below its October 8 low of about $254 to around $242 on October 24, with resistance at $273. NEAR fell below its October 8 low of about $4.30 to touch $4.24, with resistance near $5.33. Despite the decline, trading volume on October 25 was the lowest since the selloff began on October 7, suggesting sellers may be tiring as TAO dipped to $247 before bouncing above $250.

NEAR co-founder Illia Polosukhin announced on October 24 that NEAR Intents will integrate with Nasdaq and NYSE trading platforms, though he presented the example as hypothetical. An upcoming Backers Summit on October 28 includes a proposal that could reduce coin issuance. If TAO closes below $242 or NEAR below $4.24, the outlook for AI coins may appear broken for this cycle; conversely, rises above $273 and $5.33 would suggest the trend is only pausing.