On October 23, Binance founder Changpeng “CZ” Zhao addressed fears surrounding artificial intelligence (AI) potentially compromising cryptocurrencies. He suggested that concerns over AI hacking Bitcoin are overblown, emphasizing that both the internet and banking systems already operate with relatively weak encryption measures. He acknowledged, however, that AI has enhanced the risks associated with phishing and social engineering attacks, which exploit human vulnerabilities rather than attempting to break encryption. Following CZ’s statements, Bitcoin’s price saw a slight decline of 0.8% over the 24-hour period, settling at $81,817.
The cryptocurrency remained around the $81,000 mark overnight. Observers noted significant activity in whale wallets, indicating underlying bullish sentiment among larger investors. This leads to an urgent question: Are the threats posed by AI and quantum computing legitimate, and what factors might contribute to Bitcoin’s price recovery?
Everyone was worried about AI hacking cryptocurrencies, but the internet and banking systems rely on weaker encryption.
That said, AI doesn’t need to break Bitcoin’s encryption to cause damage, and leaked data already enables further phishing, social engineering, and more.
Stay safe!— CZ🔶BNB (@cz_binance) October 23, 2026
Bitcoin and the Reality of AI and Quantum Threats
Currently, the code that underpins Bitcoin is not at risk from AI developments. While AI technologies can find vulnerabilities in software or craft sophisticated scams, they cannot solve the mathematical algorithms that secure Bitcoin’s private keys. CZ highlighted the fact that the same public key cryptography techniques securing Bitcoin also protect web traffic and banking data. Thus, a machine capable of breaking Bitcoin’s encryption would equally endanger traditional online systems.
Looking towards the future, quantum computing presents a more serious long-term challenge. Presently, no existing quantum machines can compromise Bitcoin’s signature system. However, members of the Quantum Alliance, which includes a consortium of nine cryptocurrency companies, have estimated that approximately 30% of Bitcoin’s total supply—roughly 6.4 million BTC—is held in addresses where public keys have already been exposed on the blockchain. This notably includes addresses linked to Bitcoin’s creator, Satoshi Nakamoto.
Opinions on when quantum attacks might become feasible vary among experts. Richard Kirback, CTO of Postquant Labs, suggests that by 2028, it may be realistic to expect the emergence of technology capable of breaching current encryption methods. However, many remain reticent to provide specific timelines.
The Weakness of Users in Cybersecurity
Despite robust blockchain encryption, the human element remains a critical vulnerability. Attackers can exploit stolen personal data—such as email addresses, phone numbers, and transaction histories—to devise deceptive communications that mimic those from legitimate exchanges or wallet providers. AI tools have made it easier and cheaper for fraudsters to create these convincing messages, thereby increasing their effectiveness.
Supporting CZ’s claims, a Chainalysis study projected that AI-driven fraud could yield 4.5 times greater profits than traditional scams by 2025, with identity fraud spiking by over 1,400%. The estimated revenue loss due to cryptocurrency fraud has now reached approximately $17 billion.
Bitcoin Price Outlook: Is Recovery on the Horizon?
Bitcoin’s price action has shown some resilience around the $81,000 support level, with buyers defending this mark on multiple occasions. Recently, the cryptocurrency dipped to $80,940 but bounced slightly to $81,118, just above the 50-day exponential moving average (EMA) at $80,880.
BTCUSDT chart first half
Furthermore, larger wallet activities are on the rise, with 40 new wallets recently withdrawing 9,458 BTC—approximately valued at $771.5 million—from the market maker Wintermute since October 1st. This accumulation pattern indicates a potentially bullish sentiment, even though it does not definitively signal new buying interest.
Resistance lies within the $82,100 to $82,850 range, coinciding with the last swing high, while a full price rebound could be possible if Bitcoin surpasses Wednesday’s peak at $84,900. Conversely, a daily close below $80,394 could pull the 200-day EMA down closer to $76,200.
Future Influencers on Bitcoin’s Trajectory
The price of oil is emerging as a significant factor, with Brent crude priced at $114 per barrel amid ongoing geopolitical tensions, including a shutdown of the Strait of Hormuz and U.S. sanctions on Iranian oil. Reports indicate possible renewed military operations by the U.S. and Israel against Iran, which could escalate further after the midterm elections.
The Federal Reserve’s monetary policy also looms large over Bitcoin. Recent rate increases have pushed the policy interest rate to a range of 3.75% to 4.00%. Current market expectations suggest a 94% probability that the Fed will keep rates unchanged in the upcoming October 28 decision, with more than 70% anticipating another rate hike in December, which could hinder Bitcoin’s growth prospects.
Fed odds defi rate
As the U.S. midterm elections approach on November 3, predictions suggest that Democrats have a 92.5% chance of regaining control of the House of Representatives and a 68.5% chance of winning the Senate. A split Congress, with opposing parties controlling the House and White House, could complicate any potential new cryptocurrency legislation in the coming year.
While AI hacking poses theoretical concerns, experts assert that Bitcoin’s encryption remains secure for the time being. Key drivers affecting Bitcoin’s price predominantly hinge on oil market dynamics, Federal Reserve actions, and upcoming political elections.
Disclaimer: Coinspeaker emphasizes fair and transparent reporting. This article aims to provide accurate information but should not be construed as financial or investment advice. Market conditions can change rapidly; thus, verify the information independently before making any decisions.
Daniel Francis is a technical writer and Web3 educator specializing in macroeconomics and DeFi mechanisms. A crypto native since 2017, Daniel utilizes his expertise in on-chain analytics to create evidence-based reports and comprehensive guides. Holding certifications from The Blockchain Council, he is dedicated to delivering “information acquisition” that transcends market hype and uncovers the practical applications of blockchain technology.
