According to BlockBeats, on June 12, the Bitcoin Volatility (BitVol) Index, launched by financial index company T3 Index and options trading platform LedgerX, rebounded slightly to 54.54 yesterday, a daily increase of 1.72%.
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 inferred by substituting the actual option price and other parameters except volatility σ into the B-S option pricing formula.
The actual price of an option is formed by competition among many option traders. Therefore, the implied volatility represents the views and expectations of market participants on the future of the market and is therefore considered to be the closest to the actual volatility at the time.
