BlockBeats news, on December 2, the BitVol (Bitcoin Volatility) index launched by T3 Index in collaboration with the options trading platform LedgerX rose to 60.33 yesterday, with a daily increase of 1.11%.
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 calculated using the B-S option pricing formula, by substituting the actual option price and other parameters except for volatility σ back into the formula to derive the volatility.
The actual price of options is formed by the competition of numerous options traders, therefore, implied volatility represents the market participants' views and expectations about the future of the market, and is thus considered the closest approximation to the true volatility at that time.