According to BlockBeats, the BitVol Index, launched by financial index company T3 Index in collaboration with options trading platform LedgerX, dropped to 52.33 on June 20th. This is close to the lowest level since mid-February.
The BitVol Index measures the expected implied volatility derived from the tradable Bitcoin options prices. Implied volatility refers to the volatility implied by the actual options price. It is calculated using the B-S options pricing formula, substituting the actual options price and other parameters into the formula, excluding volatility σ.
The actual price of options is formed by the competition of many options traders. Therefore, implied volatility represents the market participants' views and expectations for the future market, and is considered to be the closest to the real volatility at that time.