Bitcoin News: CZ Downplays AI Risks to BTC as Phishing Scams Rise and $81K Support Holds
Binance co-founder Changpeng “CZ” Zhao has pushed back against concerns that artificial intelligence could break Bitcoin’s cryptography, arguing that data breaches and AI-driven scams pose a more immediate danger to cryptocurrency holders.
Speaking on Friday, October 23, CZ said AI-related fears about crypto security are misplaced for now. Although Bitcoin and traditional online services rely on mathematical encryption methods, he warned that AI is making phishing attempts and social engineering attacks more sophisticated. His remarks came as BTC traded at $81,817, down 0.8% over 24 hours.
Bitcoin has remained above $81,000 despite recent volatility, while large wallets continue withdrawing BTC from market maker Wintermute. Traders are watching whether buyers can defend this level and push the price toward a stronger recovery.
AI Is Not Bitcoin’s Biggest Security Concern Yet
Artificial intelligence can identify software weaknesses and generate convincing fraudulent communications, but current systems cannot directly solve the mathematical problems that protect Bitcoin’s private keys.
CZ noted that similar cryptographic principles secure online banking and internet communications. A breakthrough capable of cracking Bitcoin’s keys would therefore threaten other widely used digital systems as well.
Quantum computing remains a longer-term concern. No existing quantum computer can break Bitcoin’s digital signatures, but the Quantum Alliance, a group of nine cryptocurrency companies, estimates that 6.4 million BTC, equivalent to roughly 30% of the circulating supply, are held in addresses with publicly exposed keys. The estimate includes coins attributed to Bitcoin creator Satoshi Nakamoto.
The timeline for a potential quantum breakthrough remains uncertain. Postquant Labs CTO Richard Carback has suggested that 2028 could be a realistic target for a machine capable of compromising current cryptography, while other experts have declined to provide firm estimates.
Bitcoin developers are considering BIP-360, a draft proposal intended to support quantum-resistant address options. However, the proposal has not yet been fully implemented.
Data Leaks Are Fueling More Sophisticated Crypto Scams
Hackers do not necessarily need to break Bitcoin’s encryption to steal funds. Personal information obtained through data breaches can help criminals impersonate exchanges, wallet providers and other trusted platforms.
AI allows scammers to produce personalized messages at scale, making fraudulent emails and communications harder to distinguish from legitimate requests.
Chainalysis data indicates that AI-powered scams were 4.5 times more profitable than traditional scams in 2025, while impersonation scams increased by more than 1,400%. Total cryptocurrency scam revenue reached an estimated $17 billion.
CZ issued another security warning earlier in the week, urging users to remain cautious when visiting websites after two critical PHP vulnerabilities exposed millions of servers to potential risks.
Bitcoin Price Outlook: Can BTC Recover From $81,000?
Bitcoin has defended the $81,000 region twice in two days. The price fell to $80,940 on Thursday and $81,118 on Friday, with both pullbacks remaining above the 50-day exponential moving average at $80,880.
Wallet activity is also drawing attention. Since October 1, 40 newly created wallets have withdrawn 9,458 BTC, valued at approximately $771.5 million, from Wintermute. Although this activity does not conclusively establish new buying, it is consistent with continued accumulation.
The immediate resistance zone sits between $82,100 and $82,850, where four-hour moving averages converge with the previous swing high. A breakout above this range could improve Bitcoin’s short-term outlook.
The next major level to watch is $84,900, Wednesday’s high. A move above this threshold would offer stronger confirmation of a sustained rebound.
On the downside, a daily close below $80,394 could expose BTC to additional selling pressure, with the 200-day EMA near $76,200 serving as the next important technical reference.
Three Factors That Could Drive Bitcoin’s Next Move
Oil Prices and Middle East Tensions
Brent crude is trading near $114 per barrel amid continued disruption around the Strait of Hormuz and the U.S. blockade of Iranian oil.
The New York Times reported that U.S. and Israeli forces have plans to resume strikes against Iran after the midterm elections, although no final authorization has been issued. Further escalation could raise energy prices, increase inflation concerns and pressure risk assets such as Bitcoin.
Federal Reserve Interest-Rate Policy
The Federal Reserve raised its benchmark interest-rate range to 3.75%–4.00% in September. According to prediction-market data compiled by DeFi Rate, traders assigned approximately 94% odds to unchanged rates at the October 28 meeting and more than 70% odds of another increase in December.
Persistently high interest rates could limit demand for speculative assets, making the Fed’s decisions a key influence on Bitcoin’s recovery prospects.
U.S. Midterm Elections
The November 3 elections could affect the outlook for cryptocurrency regulation. Polymarket data puts Democrats’ chances of winning the House at 92.5% and the Senate at 68.5%.
If Democrats gain control of Congress while Republicans retain the White House, disagreements could make new crypto legislation more difficult to advance next year.
Final Outlook
Bitcoin’s ability to hold above $81,000 offers a potential foundation for a recovery, but buyers still need to overcome resistance at $82,850 and reclaim $84,900 to strengthen the bullish case.
CZ’s warning highlights a distinction between threats to Bitcoin’s underlying technology and attacks targeting its users. AI is not currently breaking Bitcoin’s cryptography, but stolen personal data and increasingly convincing scams are creating immediate security challenges.
For BTC traders, oil prices, Federal Reserve policy and the upcoming U.S. midterm elections remain important factors to monitor as the market searches for its next direction.
