BitVol Index Sees Significant Increase in Volatility

According to BlockBeats, the BitVol Index, a measure of Bitcoin's expected 30-day implied volatility, experienced a notable rise on November 13. The index, developed by financial index company T3 Index in collaboration with options trading platform LedgerX, surged to 62.32, marking an 8.18% increase in a single day. The BitVol Index is designed to gauge the expected volatility derived from the prices of tradable Bitcoin options. Implied volatility, in this context, refers to the volatility implied by the actual prices of options. It is calculated using the Black-Scholes option pricing model, which incorporates the actual option price and other parameters, excluding volatility, to deduce the volatility figure. The actual price of options is determined through the competitive actions of numerous options traders. As a result, implied volatility is considered a reflection of market participants' views and expectations regarding future market conditions, making it a close approximation of the true volatility at that time.