The Bitcoin volatility index rose to 78.81 yesterday, close to its highest value in a year

ChainCatcher news, the BitVol (Bitcoin Volatility) Index launched by the financial index company T3 Index in collaboration with the Bitcoin options trading platform LedgerX rose to 78.81 yesterday, just below the one-year high record of 79.92 set on March 4.

It is reported that the BitVol Index measures the 30-day expected implied volatility derived from the prices of tradable Bitcoin options. Implied volatility refers to the volatility implied by the actual option prices. It is the volatility derived using the B-S option pricing formula, substituting the actual option prices and other parameters except for volatility σ into the formula. The actual prices of options are formed through competition among numerous options traders, thus, implied volatility represents the market participants' views and expectations about the future of the market, and is therefore considered the closest approximation to the true volatility at that time.