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, marking a single-day drop of 0.54%.
The BitVol index measures the 30-day expected implied volatility derived from the price 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 Black-Scholes option pricing formula.
The actual price of an option is formed by the competition of many option traders. Therefore, the implied volatility represents the market participants' views and expectations on the future of the market and is regarded as the closest to the actual volatility at the time.
