Artificial intelligence is a Sword of Damocles dangling over crypto \u2014 but Wall Street isn\u2019t quailing, says Coinbase.<\/p>\n
Anthropic\u2019s new Claude Mythos AI model is able to exploit security vulnerabilities autonomously and therefore threatens crypto markets, according to a second-quarter outlook by Coinbase and Classnode. In theory, it could hammer key weak points across protocols, exchanges, and infrastructure.<\/p>\n
But that\u2019s not shaking institutional investors\u2019 confidence in Bitcoin, David Duong, Coinbase\u2019s global head of investment research said in a note shared with DL News.<\/p>\n
He highlighted that three\u2011quarters of institutions \u201cstill see Bitcoin as undervalued\u201d despite the short-term fears clouding the market\u2019s sentiment.<\/p>\n
Duong\u2019s confidence comes as crypto has struggled to keep up with other asset classes like stocks or gold. Bitcoin is still down nearly 40% from its October peak while the S&P 500 printed a new record in April. It is currently trading at $77,000 after rallying some 13% over the past month.<\/p>\n
\u201cOur outlook for the next quarter remains neutral, but there are early signs the market may be finding a floor,\u201d Duong said. \u201cMuch of the speculative activity has been flushed out.\u201d<\/p>\n
Exchange-traded fund inflow data backs him up. April has been the best month since October as traders poured just under $2 billion into Bitcoin ETFs over the past 30 days, DefiLlama data shows.<\/p>\n
How dangerous is Mythos? <\/p>\n
Major crypto exchanges including Coinbase and Binance are moving quickly to get access to Mythos, The Information reported on 14 April.<\/p>\n
The model has been kept limited to a small group of big tech partners because of concerns about its potential misuse. Anthropic says it has not set a public release date because of how powerful the system is.<\/p>\n
The urgency comes from what the model can do, at least theoretically.<\/p>\n
Claude Mythos is said to be able to find and exploit \u201czero-day\u201d bugs \u2014 hidden security flaws that developers do not yet know about \u2014 across operating systems and web browsers.<\/p>\n
While major exchanges look to use the AI to strengthen their defences, much of the crypto industry does not have access.<\/p>\n
Deddy Lavid, head of cybersecurity firm Cyvers Alert, told DL News in April that the risks are serious. If AI can find weaknesses across the internet at scale, crypto could be one of the first sectors hit. That is because the industry relies heavily on browsers, wallets, and open-source tools that are directly linked to moving money.<\/p>\n
The potential damage could be large. The crypto industry already lost about $3.4 billion to hacks and attacks in 2025, according to Chainalysis.<\/p>\n