BlockBeats News, on November 24, the BitVol (Bitcoin Volatility) Index launched by the financial index company T3 Index in collaboration with the options trading platform LedgerX dropped to 66.32 yesterday, a daily decrease of 0.29%.
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 by using the B-S option pricing formula, substituting the actual option prices and other parameters excluding the volatility σ into the formula.
The actual price of options is formed by the competition among numerous options traders, thus, implied volatility represents the market participants' views and expectations about the future of the market, and is therefore regarded as the closest approximation of the true volatility at that time.
