🎉Good news! The Bitcoin Volatility Index (BitVol) fell to 57.68 yesterday, a daily decrease of 1.47%! This is an index jointly launched by financial index company T3 Index and Bitcoin options trading platform LedgerX. It measures the 30-day expected implied volatility derived from tradable Bitcoin option prices.

So, what is implied volatility? Simply put, it refers to the volatility implied by the actual option price. By using the B-S option pricing formula, the actual price of the option and other parameters except the volatility σ are substituted into the formula and the volatility is deduced. The actual price of options is formed by competition among many option traders. Therefore, implied volatility represents market participants’ views and expectations for the future of the market, and is thus considered to be closest to the true volatility at that time.

The decline in the BitVol Index this time means that the market’s expectations for the future fluctuations of Bitcoin have been reduced, which is undoubtedly good news for investors. So, does this mean that the Bitcoin market will usher in a period of stability? Or is it just a brief moment of peace? Everyone is welcome to express your opinions in the comment area and discuss the future direction of the Bitcoin market together! 😉