BlockBeats news, on December 25, the BitVol (Bitcoin Volatility) Index launched by the financial index company T3 Index in conjunction with the options trading platform LedgerX rose to 65.36 yesterday, with a daily increase of 3.3%.
BlockBeats note: The BitVol Index measures the 30-day expected implied volatility derived from the prices of tradable Bitcoin options. Implied volatility refers to the volatility implied by the actual option price. It is derived using the B-S option pricing formula by inputting the actual option price and other parameters excluding volatility σ into the formula to back-calculate the volatility.
The actual price of options is formed by competition among numerous options traders, thus the implied volatility represents the market participants' views and expectations about the future of the market, and is therefore considered the closest approximation to the actual volatility at that time.