The BitVol (Bitcoin Volatility) Index launched by the financial index company T3 Index and the Bitcoin options trading platform LedgerX rebounded to 47.71 yesterday, a single-day increase of 2.69% compared to June 9 (46.46).
Note: The BitVol Index measures 30-day expected implied volatility derived from tradable Bitcoin options prices. Implied volatility is the volatility implied by the actual option price.
It is the volatility derived by using the B-S option pricing formula, substituting the actual price of the option and other parameters except the volatility σ into the 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 therefore considered to be the closest to the real volatility at that time.