According to BlockBeats, the BitVol index, a measure of Bitcoin's expected implied volatility, rose to 57.52 on February 25th, marking a daily increase of 2.68%. The index is a collaboration between financial index company T3 Index and Bitcoin options trading platform LedgerX. The BitVol index measures the 30-day expected implied volatility derived from tradable Bitcoin options prices.
Implied volatility refers to the volatility implied by the actual options prices. 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 by the competition of numerous option traders, so the implied volatility represents the market participants' views and expectations for the future market, and is considered to be the closest to the real volatility at that time.