Bitcoin News: CZ Rejects AI Fears as BTC Defends $81K Amid Rising Phishing Threats

Binance founder Changpeng “CZ” Zhao has dismissed concerns that artificial intelligence could soon compromise Bitcoin’s cryptographic security, warning that data leaks and AI-powered scams present a more immediate risk to cryptocurrency users.

On Friday, October 23, CZ argued that fears of AI breaking crypto encryption are exaggerated. He explained that Bitcoin uses mathematical security principles similar to those protecting internet communications and online banking. However, he cautioned that AI is already helping criminals launch more convincing phishing and social engineering attacks.

His comments came as Bitcoin traded at $81,817, down 0.8% over 24 hours. BTC remained above the $81,000 support level, while large wallets continued accumulating coins, raising hopes of a possible price recovery.

CZ Says AI Is Not Ready to Break Bitcoin’s Security

Artificial intelligence can identify software vulnerabilities and generate sophisticated scams, but current AI models cannot solve the mathematical problems that protect Bitcoin’s private keys.

CZ emphasized that the cryptographic systems underpinning Bitcoin are closely related to those used across traditional financial services and the wider internet. A machine capable of cracking Bitcoin’s keys would potentially threaten these systems as well.

Quantum computing, however, remains a longer-term concern for the cryptocurrency industry.

The Quantum Alliance, a coalition of nine crypto companies, estimates that approximately 6.4 million BTC, representing around 30% of the total supply, are held in addresses with publicly exposed keys. The figure includes coins attributed to Bitcoin’s pseudonymous creator, Satoshi Nakamoto.

Experts remain divided over when quantum computers could become powerful enough to undermine existing cryptography. Postquant Labs CTO Richard Carback has identified 2028 as a possible timeframe, although other specialists have avoided making precise predictions.

Bitcoin developers are exploring potential defenses through BIP-360, a draft proposal focused on quantum-resistant address options. The proposal remains under development.

Data Breaches Make Crypto Investors Easier Targets

CZ’s main concern is that criminals can steal cryptocurrency without attacking Bitcoin’s underlying code.

Leaked email addresses, phone numbers and purchase histories can help scammers impersonate exchanges, wallet providers and other legitimate businesses. AI makes these attacks easier to automate and allows criminals to tailor fraudulent messages to individual victims.

Chainalysis reported that AI-powered scams were 4.5 times more profitable than traditional scams in 2025. Impersonation scams also increased by more than 1,400%, while total cryptocurrency scam revenue reached an estimated $17 billion.

CZ issued another security warning on Wednesday, urging users to exercise caution when browsing websites after two critical PHP vulnerabilities exposed millions of servers to potential attacks.

Bitcoin Price Analysis: Can BTC Break Above $81,000?

Bitcoin buyers have defended the $81,000 area on two occasions in recent trading sessions. BTC dropped to $80,940 on Thursday and $81,118 on Friday, with both moves finding support above the 50-day exponential moving average at $80,880.

Meanwhile, large-wallet activity suggests continued accumulation. Since October 1, 40 newly created wallets have withdrawn 9,458 BTC, worth approximately $771.5 million, from market maker Wintermute. Although this does not necessarily confirm fresh buying, the withdrawals are consistent with a pattern of accumulation.

The first resistance area sits between $82,100 and $82,850, where four-hour moving averages align with a previous swing high. A break above this zone could strengthen the recovery attempt.

Bitcoin’s next significant hurdle is $84,900, the high recorded on Wednesday. Reclaiming that level would provide stronger evidence of a sustained rebound.

If BTC falls below $80,394 on a daily closing basis, selling pressure could intensify, potentially exposing the 200-day EMA near $76,200.

Three Key Catalysts That Could Influence BTC

Oil Prices and Geopolitical Risks

Brent crude is trading near $114 per barrel amid disruptions around the Strait of Hormuz and the ongoing U.S. blockade of Iranian oil.

The New York Times reported that U.S. and Israeli forces have plans to resume strikes against Iran following the midterm elections, although no final approval has been issued.

Further escalation could push oil prices higher, reinforce inflation concerns and weigh on Bitcoin alongside other risk-sensitive assets.

Federal Reserve Interest Rates

The Federal Reserve raised its benchmark interest-rate range to 3.75%–4.00% in September. Prediction-market data compiled by DeFi Rate indicated approximately 94% odds of unchanged rates at the October 28 meeting and more than 70% odds of another increase in December.

Expectations of prolonged restrictive monetary policy could limit demand for speculative investments and make a sustained Bitcoin recovery more difficult.

U.S. Midterm Elections

The November 3 midterm elections could influence the future direction of U.S. cryptocurrency regulation.

Polymarket data assigns Democrats a 92.5% probability of winning the House and a 68.5% chance of securing the Senate. A divided government could make it harder to advance new crypto legislation next year, potentially adding uncertainty for investors.

Bitcoin Outlook: Will the $81K Support Trigger a Rebound?

Bitcoin’s defense of $81,000 offers a potential starting point for recovery, but the market still needs a decisive move above $82,850 before testing $84,900.

CZ’s warning underscores the difference between breaking Bitcoin’s cryptographic defenses and exploiting weaknesses in user security. While AI does not currently pose an immediate threat to Bitcoin’s underlying encryption, data leaks and increasingly sophisticated phishing campaigns remain significant risks.

In the near term, Bitcoin’s price direction will likely depend more on geopolitical developments, Federal Reserve policy and the U.S. election outlook than on an imminent AI breakthrough against its cryptography.