The BitVol (Bitcoin Volatility) Index, launched by financial index company T3 Index and Bitcoin options trading platform LedgerX, fell to 62.87 yesterday, a daily decrease of 1.86%.
The BitVol Index measures 30-day expected implied volatility derived from tradable Bitcoin options prices. Implied volatility refers to the volatility implied by the actual option price. It uses the B-S option pricing formula to derive the volatility by substituting the actual price of the option and other parameters except the volatility σ into the formula.