BlockBeats news, on November 28, the BitVol (Bitcoin Volatility) index launched by financial index company T3 Index in collaboration with options trading platform LedgerX dropped to 63.51 yesterday, with a daily decrease of 0.8%.
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 price. It is the volatility derived using the B-S option pricing formula, by substituting the actual option price and other parameters, excluding volatility σ, into the formula.
The actual price of options is formed by the competition of numerous options traders, thus the implied volatility represents the market participants' views and expectations about the future of the market, and is therefore considered to be the closest to the actual volatility at that time.
