According to BlockBeats, on September 23, the BitVol (Bitcoin volatility) index launched by financial index company T3 Index and options trading platform LedgerX fell to 53.05 yesterday, a single-day drop of 0.54%.
The BitVol Index measures the 30-day expected implied volatility derived from the prices of tradable Bitcoin options. Implied volatility is the volatility derived by substituting the actual option prices and other parameters except volatility Ï into the B-S option pricing formula.
The actual option price is formed by the competition of many option traders, so the implied volatility represents the views and expectations of market participants on the future of the market and is considered to be the indicator closest to the actual volatility at the time.
