According to BlockBeats, the BitVol index, launched by financial index company T3 Index in collaboration with options trading platform LedgerX, rose to 46.4 on July 1, marking a single-day increase of 1.05%.
The BitVol index measures the expected implied volatility derived from the tradable Bitcoin option prices. Implied volatility refers to the volatility implied by the actual option price. It is the volatility inferred by substituting the actual option price and other parameters, excluding volatility σ, into the B-S option pricing formula.
The actual price of an option is formed by the competition among many option traders. Therefore, implied volatility represents the market participants' views and expectations for the future of the market, and is considered to be the closest to the real volatility at that time.