According to BlockBeats, the BitVol Index, a measure of Bitcoin's expected implied volatility, reached 57.52 on February 25, a daily increase of 2.68%. The index is a collaboration between financial index company T3 Index and Bitcoin options trading platform LedgerX. The BitVol Index measures the 30-day expected implied volatility derived from tradable Bitcoin option prices.
Implied volatility refers to the volatility implied by the actual prices of options. It is calculated using the Black-Scholes option pricing formula, entering the true price of the option and all other parameters except the volatility σ. The real price of options is formed by the competition of many options traders, so implied volatility represents market participants' views and expectations regarding the future market and is considered closest to actual volatility at this moment.
