- On February 16, the BitVol index, measuring 30-day implied volatility of Bitcoin options, rose to 61.18, showing a daily increase of 1.12%.
- Developed by T3 Index and LedgerX, the index reflects the volatility implied by actual option prices in the market.
- Implied volatility is calculated using the Black-Scholes option pricing formula, with the actual option price and other parameters, excluding volatility σ.
- The option price results from competition among traders, making implied volatility a gauge of market participants' views and expectations for future market movements.
- Implied volatility is considered a close approximation to real volatility at a given time.
