According to BlockBeats, the BitVol index, a measure of expected 30-day implied volatility derived from tradable Bitcoin options prices, saw a slight increase to 54.54 on June 12. This represents a daily increase of 1.72%. The index was launched by financial index company T3 Index in collaboration with options trading platform LedgerX.
Implied volatility refers to the volatility implied by the actual price of an option. It is calculated using the B-S option pricing formula, where the actual price of the option and all other parameters except volatility (σ) are substituted into the formula to derive the volatility.
The actual price of an option is formed by competition among many options traders. Therefore, implied volatility represents the market participants' views and expectations about the future of the market, and is considered to be the closest to the real volatility at that time.