Bittensor (TAO) Leads AI Altcoin Short Squeeze as Iran Talks Whipsaw Prices

Bittensor (TAO) helped lead an AI-focused altcoin surge after U.S. President Donald Trump announced a five-day pause on strikes against Iran’s energy infrastructure. The announcement, alongside claims of “productive conversations,” triggered a relief rally across risk assets and a wave of short liquidations. According to the report, Bittensor (TAO) rose about 10%+ over 24 hours (10.2% cited), while Artificial Superintelligence Alliance (FET) gained ~6.2% and Render (RENDER) jumped ~4.8%. Aptos (APT), LayerZero (ZRO), and World Liberty Financial (WLFI) also posted notable gains. Total crypto market cap reportedly topped $2.5T (CoinGecko data). However, volatility quickly intensified when Iran’s foreign ministry denied that dialogue with Washington had occurred, with Iran parliament speaker Mohammad Bagher Ghalibaf echoing the denial. Oil prices fell after Trump’s statement, then later rebounded above $100/bbl as uncertainty returned. Over 24 hours, the article estimates roughly $670M in leveraged crypto liquidations, including $370M from short positions. The move was amplified by positioning: Derek Lim (Caladan) said the squeeze hit “higher-beta names where positioning was already most compressed.” He also pointed to Nvidia CEO Jensen Huang’s recent GTC conference as a second catalyst supporting the AI narrative. Despite the rally, the article warns that broad “alt season” is less likely; gains may concentrate in a narrow set of AI- and fundamentals-driven tokens. It also notes declining altcoin volumes amid tighter macro conditions, keeping risk sentiment fragile.