Bitcoin News: CZ Dismisses AI Threats to Bitcoin as Data Leaks Increase Phishing Risks
Binance founder Changpeng “CZ” Zhao said on Friday, October 23, that concerns about AI breaking cryptocurrency security are largely misplaced. While internet services and banking systems rely on similar, less robust encryption methods, he warned that artificial intelligence is already making phishing attacks and social engineering more effective against everyday users. His comments became a major Bitcoin news topic as BTC traded at $81,817, down 0.8% over 24 hours.
Bitcoin remained above the $81,000 level overnight, while large wallets continued accumulating BTC. This raises two important questions: How serious are the risks posed by AI and quantum computing, and what could trigger a Bitcoin price recovery from its current levels?
Bitcoin News: Do AI and Quantum Computing Pose a Genuine Threat?
For now, Bitcoin’s underlying cryptography remains secure against AI attacks. Artificial intelligence can identify software vulnerabilities and generate convincing fraudulent messages, but it cannot independently solve the mathematical problems protecting Bitcoin’s private keys. CZ emphasized that the same general category of public-key cryptography also protects internet communications and online banking. A computer capable of cracking Bitcoin’s keys would therefore pose a significant threat to those systems as well.
Quantum computing represents a more distant concern. No existing quantum computer can break Bitcoin’s digital signatures. However, the Quantum Alliance, a coalition of nine cryptocurrency companies, estimates that 6.4 million BTC, representing approximately 30% of the total supply, are held in addresses with publicly exposed keys. This group includes coins believed to belong to Bitcoin creator Satoshi Nakamoto.
Experts remain divided over when quantum computers might become powerful enough to compromise current cryptographic systems. Richard Carback, CTO of Postquant Labs, considers 2028 a plausible timeframe for such a breakthrough, while other specialists avoid making precise predictions.
Bitcoin developers are exploring potential defenses, including BIP-360, a proposal designed to introduce quantum-resistant address options. However, the proposal remains in the draft stage.
The immediate danger is less about breaking Bitcoin’s code and more about exploiting its users. Stolen email addresses, phone numbers and purchasing records can help scammers create highly personalized messages that appear to come from legitimate exchanges or wallet providers. AI makes these fraudulent campaigns cheaper to run and more difficult to recognize.
Research supports CZ’s concerns. According to Chainalysis, AI-powered scams were 4.5 times more profitable than traditional scams in 2025, while impersonation scams increased by more than 1,400%. Overall cryptocurrency scam revenue was estimated at $17 billion.
This marked CZ’s second security warning within three days. On Wednesday, he urged users to exercise caution across websites after two critical PHP vulnerabilities exposed millions of servers to potential attacks.
Bitcoin Price Analysis: Can BTC Rebound From $81,000?
Bitcoin buyers have defended the $81,000 support zone twice over the past two days. BTC fell to $80,940 on Thursday and $81,118 on Friday, recovering on both occasions while staying above its 50-day exponential moving average (EMA) at $80,880.
Large holders also appear to be accumulating Bitcoin. Since October 1, 40 newly created wallets have withdrawn 9,458 BTC, valued at approximately $771.5 million, from market maker Wintermute. Although newly created wallets do not necessarily represent new investors, the withdrawals are consistent with a pattern of continued accumulation.
The first significant resistance zone lies between $82,100 and $82,850, where four-hour moving averages converge with the previous swing high. A move above this range could strengthen the recovery attempt.
The next major hurdle is $84,900, Wednesday’s high. Reclaiming that level would provide stronger evidence that Bitcoin is staging a meaningful rebound rather than experiencing a brief relief rally.
On the downside, a daily close below $80,394 could weaken the current support structure and expose Bitcoin to its 200-day EMA near $76,200.
What Are the Main Factors Driving Bitcoin’s Next Move?
1. Oil Prices and Geopolitical Tensions
Oil prices remain a major risk for Bitcoin. Brent crude is trading at approximately $114 per barrel as disruptions around the Strait of Hormuz continue and the U.S. blockade of Iranian oil remains in place.
The New York Times reported this week that U.S. and Israeli forces have plans to resume strikes against Iran after the U.S. midterm elections. However, no decision to proceed has been approved.
Further escalation could push energy prices higher, increase inflation concerns and put additional pressure on risk-sensitive assets such as Bitcoin.
2. Federal Reserve Policy
The Federal Reserve’s interest-rate outlook is another significant obstacle to a BTC recovery. The central bank raised its benchmark interest-rate range to 3.75%–4.00% in September, keeping monetary policy restrictive.
Data compiled by DeFi Rate from prediction markets showed traders assigning approximately 94% odds to the Fed holding rates steady at its October 28 meeting. The same data indicated a probability above 70% of another rate increase in December.
Expectations of elevated interest rates can weigh on Bitcoin by reducing the appeal of riskier investments. Unless market expectations shift toward easier monetary policy, the Fed could remain a major headwind for BTC.
3. U.S. Midterm Elections on November 3
The upcoming U.S. midterm elections could also influence cryptocurrency markets and regulatory expectations.
Polymarket assigns Democrats a 92.5% probability of winning the House of Representatives and a 68.5% chance of securing the Senate. If Democrats gain control of Congress while Republicans retain the White House, passing new cryptocurrency legislation could become more difficult next year.
Uncertainty surrounding the regulatory outlook may affect investor sentiment as the election approaches.
Bitcoin Outlook: Will BTC Reclaim Higher Levels?
AI is unlikely to break Bitcoin’s cryptographic protections in the immediate future, but increasingly sophisticated phishing attacks and data leaks remain serious threats to cryptocurrency users.
From a market perspective, Bitcoin’s ability to defend $81,000 offers some encouragement, particularly as large wallets continue withdrawing coins from market makers. However, a sustained recovery will depend on BTC breaking through resistance near $82,850 and reclaiming $84,900.
For now, oil prices, Federal Reserve policy and the November 3 midterm elections are likely to play a more immediate role in determining Bitcoin’s next move than fears of AI disrupting its cryptography.
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