CZ Says Bitcoin Can Withstand AI, but User Data Leaks Raise Concerns Near $81,000

Bitcoin News: CZ Says AI Won’t Crack BTC as Data Leaks Raise Security Concerns

Binance founder Changpeng “CZ” Zhao has dismissed fears that artificial intelligence could soon break Bitcoin’s cryptographic defenses, warning that stolen personal information and increasingly sophisticated scams pose a more immediate threat to crypto investors.

On Friday, October 23, CZ said concerns about AI compromising cryptocurrency encryption were exaggerated. He noted that Bitcoin relies on mathematical security principles similar to those used by online banking and internet services. However, he warned that AI is making phishing campaigns and social engineering attacks more convincing and easier to execute.

His remarks came as Bitcoin traded at $81,817, down 0.8% over 24 hours. BTC continued to hold above the $81,000 support level, while large wallets accumulated more coins, raising questions about whether the market could stage a recovery.

AI Threats to Bitcoin Remain Limited for Now

AI can identify software vulnerabilities and generate convincing fraudulent messages, but current systems cannot independently solve the mathematical problems that secure Bitcoin’s private keys.

CZ argued that breaking Bitcoin’s cryptography would also threaten other digital systems that depend on similar security methods, including online banking and internet communications.

Quantum computing presents a different challenge. Although no existing quantum computer can break Bitcoin’s digital signatures, the Quantum Alliance, a group of nine cryptocurrency companies, estimates that 6.4 million BTC, or roughly 30% of the total supply, are held in addresses with publicly exposed keys. The estimate includes coins attributed to Bitcoin creator Satoshi Nakamoto.

Experts disagree about when quantum computers might become powerful enough to compromise existing cryptographic standards. Postquant Labs CTO Richard Carback considers 2028 a possible timeframe, while other specialists remain cautious about predicting a date.

Bitcoin developers are exploring potential protections through BIP-360, a draft proposal aimed at introducing quantum-resistant address options. However, the proposal has not yet been fully implemented.

Data Leaks Are Making Crypto Users More Vulnerable

Cybercriminals do not need to break Bitcoin’s encryption to steal funds. Exposed email addresses, phone numbers and purchasing records can help attackers impersonate exchanges, wallet providers and other trusted services.

AI makes these schemes more dangerous by enabling scammers to produce personalized messages at scale, making fraudulent communications harder to distinguish from legitimate ones.

According to Chainalysis, AI-enabled scams were 4.5 times more profitable than traditional scams in 2025. Impersonation scams increased by more than 1,400%, while estimated cryptocurrency scam revenue reached $17 billion.

CZ also issued a separate security warning on Wednesday, urging 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 $81K?

Bitcoin has defended the $81,000 area twice in two days, suggesting buyers are attempting to establish a short-term price floor.

BTC fell to $80,940 on Thursday and $81,118 on Friday, with both declines remaining above the 50-day exponential moving average at $80,880.

Large-wallet activity is also attracting attention. Since October 1, 40 newly created wallets have withdrawn 9,458 BTC, worth approximately $771.5 million, from market maker Wintermute. Although these withdrawals do not necessarily indicate new buying, they are consistent with continued accumulation.

The first resistance zone lies between $82,100 and $82,850, where four-hour moving averages converge with a previous swing high. A breakout above this range could strengthen the recovery outlook.

Beyond that, $84,900 represents the next major hurdle, marking Wednesday’s high. A move above this level would provide stronger evidence of a sustained rebound.

However, a daily close below $80,394 could weaken the current setup and expose BTC to further losses toward the 200-day EMA near $76,200.

Three Factors That Could Shape Bitcoin’s Next Move

Oil Prices and Geopolitical Tensions

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 after the midterm elections, although no final authorization has been issued.

Further escalation could push energy prices higher, intensify inflation concerns and place additional pressure on Bitcoin and other risk-sensitive assets.

Federal Reserve 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.

Expectations of persistently high interest rates could limit investment in speculative assets, creating another obstacle for Bitcoin’s recovery.

U.S. Midterm Elections

The November 3 midterm elections could influence the future of cryptocurrency regulation in the United States.

Polymarket data places 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, political disagreements could complicate efforts to pass new crypto legislation next year.

Can Bitcoin Turn $81,000 Into a Recovery?

Bitcoin’s ability to remain above $81,000 offers some encouragement, but buyers must overcome resistance near $82,850 before the market can challenge $84,900.

CZ’s comments highlight that AI’s immediate danger to crypto lies less in breaking Bitcoin’s encryption and more in exploiting vulnerable users through data leaks and sophisticated scams.

For traders, oil prices, Federal Reserve decisions and the upcoming U.S. elections remain key factors to watch as Bitcoin attempts to establish a stronger recovery.v