According to BlockBeats, the BitVol index, a measure of the 30-day implied volatility of Bitcoin options, rose to 61.18 on February 16, marking a daily increase of 1.12%. The index is a collaboration between financial index company T3 Index and Bitcoin options trading platform LedgerX. Implied volatility refers to the volatility implied by the actual option price. It is calculated using the Black-Scholes option pricing formula, inputting the actual option price and all other parameters except for the volatility σ.
The actual option price is formed through competition among numerous option traders. Therefore, implied volatility represents the market participants' views and expectations for the future market, and is considered the closest to the real volatility at that time.