BlockBeats news, on November 2, the BitVol (Bitcoin Volatility) index launched by financial index company T3 Index in conjunction with options trading platform LedgerX rose to 62.95 yesterday, with a daily increase of 0.77%.
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 prices. It is the volatility derived using the B-S option pricing formula by inputting the actual option prices and other parameters except for the volatility σ into the formula.
The actual price of options is formed by the competition of many options traders, so the implied volatility represents the market participants' views and expectations about the future of the market, and is thus seen as the closest approximation to the true volatility at that time.