Basel Committee Crypto Capital Rules, U.S. Dollar Index, and Dow Jones Industrial Average Effects on Bitcoin Volatility: Basel Committee Crypto Capital Rules, U.S. Dollar Index, and Dow Jones Industrial Average Effects on Bitcoin Volatility

Zana Majid Aziz

doi:10.63841/iue3261167

Authors

Zana Majid Aziz Kieso Company for Consultancy Services Sulaymaniyah, 46001, IRAQ Author

DOI:

https://doi.org/10.63841/iue3261167

Keywords:

Bitcoin volatility, Basel Crypto Rules, U.S. Dollar Index, Dow Jones Average, banking regulation.

Abstract

This study examines the impact of Basel Committee Crypto-Asset Capital Regulations (BCCR), the U.S. Dollar Index (DXY), and the Dow Jones Industrial Average (DJIA) on Bitcoin price volatility using time-series data from global financial markets. The analysis employs regression-based and correlation techniques to investigate how banking capital requirements and macro-financial indicators influence cryptocurrency price dynamics. The findings indicate that Basel crypto capital regulations impose binding constraints on institutional liquidity, thereby amplifying Bitcoin volatility, particularly during periods of market stress. Moreover, a strengthening U.S. dollar, as measured by the DXY, exerts downward pressure on Bitcoin prices by encouraging capital reallocation toward dollar-denominated reserves, while movements in the DJIA are associated with heightened volatility driven by shifts in equity market risk. Moderation analysis further reveals that regulatory capital constraints intensify the effect of the DXY on Bitcoin volatility during market downturns. Overall, the results demonstrate the growing integration of Bitcoin into traditional macro-financial channels, challenging the notion of cryptocurrencies as effective diversification instruments.

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Author Biography

Zana Majid Aziz, Kieso Company for Consultancy Services Sulaymaniyah, 46001, IRAQ

Zana Majid Aziz is a legal professional with a Master’s degree in Law and serves as Legal Counsel at Kieso Company for Consultancy Services in Sulaimani, Iraq. He advises on contracts, regulatory compliance, and legal risk, supporting the company’s consulting activities and client relationships. Aziz combines academic legal training with practical experience to provide clear, reliable guidance in a range of commercial and corporate matters.

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Basel Committee Crypto Capital Rules, U.S. Dollar Index, and Dow Jones Industrial Average Effects on Bitcoin Volatility