According to BlockBeats, the Bitcoin volatility index BitVol, launched by financial index company T3 Index in cooperation with options trading platform LedgerX, fell to 52.33 on June 20, the lowest level since mid-February.
The BitVol Index is the 30-day expected implied volatility calculated by measuring the price of tradable Bitcoin options. Implied volatility is the volatility inferred by substituting the actual option price and other parameters except volatility σ into the B-S option pricing formula.
The actual price of an option is formed by competition among many option traders. Therefore, the implied volatility represents the views and expectations of market participants on the future of the market and is therefore considered to be the closest to the actual volatility at the time.