The Bitcoin Volatility Index dropped to 78.23 yesterday, a daily decrease of 2.67%

The BitVol index, launched by financial index company T3 Index in partnership with Bitcoin options trading platform LedgerX, fell to 78.23 yesterday, a daily drop of 2.67%.

 

Note: The BitVol index measures the expected implied volatility derived from tradable Bitcoin option prices over 30 days. Implied volatility refers to the volatility implied by the actual option price. It is calculated using the B-S option pricing formula, substituting all parameters except for volatility σ into the formula and then deducing it backwards. The actual price of an option is formed through competition among many options traders; therefore, implied volatility represents market participants' views and expectations about future markets and is considered as closest to real-time volatility at that time.