BlockBeats message, on December 2, the BitVol (Bitcoin Volatility) Index launched by the financial index company T3 Index and 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 the volatility that is derived using the B-S option pricing formula, by substituting the actual option price and other parameters excluding the volatility σ into the formula.
The actual price of options is formed by the competition of numerous options traders, therefore, implied volatility represents the market participants' views and expectations for the market's future, and is regarded as the closest approximation to the actual volatility at that time.
