The BitVol (Bitcoin Volatility) Index, launched by financial index company T3 Index in collaboration with the Bitcoin options trading platform LedgerX, dropped to 48.88 yesterday, marking a new low in nearly three months. 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 B-S options pricing formula, reverse-engineering the volatility by plugging in the actual options prices and other parameters except for the volatility parameter σ.
