According to BlockBeats, on July 29, the BitVol (Bitcoin volatility) index launched by financial index company T3 Index and options trading platform LedgerX fell to 54.47 yesterday, a single-day drop of 11.79%.
The BitVol Index measures the 30-day expected implied volatility derived from the prices of tradable Bitcoin options. Implied volatility is the volatility implied by actual option prices.
The actual price of an option is formed by competition among many option traders. The implied volatility represents the views and expectations of market participants on the future of the market and is considered to be the closest to the actual volatility at the time.
