Bitcoin Volatility Index Hits Lowest Since July

According to BlockBeats, the BitVol (Bitcoin Volatility) Index, launched by financial index company T3 Index in collaboration with options trading platform LedgerX, dropped to 53.61 on September 1. This marks the lowest level since July 2, with a single-day decrease of 2.79%. The BitVol Index measures the 30-day expected implied volatility derived from tradable Bitcoin options prices. Implied volatility refers to the volatility implied by actual options prices. It is calculated using the Black-Scholes options pricing formula, where the actual options price and other parameters, except for volatility (σ), are input into the formula to derive the implied volatility. The actual price of options is determined by the competition among numerous options traders. Therefore, implied volatility represents the market participants' views and expectations for the future, making it the closest approximation to the real-time volatility at that moment.