Blockchain gossip! 📢 The BitVol (Bitcoin Volatility) Index launched by financial index company T3 Index and Bitcoin options trading platform LedgerX surged to 57.52 yesterday, with a daily increase of 2.68%. So, what exactly is this BitVol Index?

Simply put, the BitVol Index measures 30-day expected implied volatility derived from tradable Bitcoin options prices. Implied volatility refers to the volatility implied by the actual option price. It is the volatility deduced by using the B-S option pricing formula by substituting the actual option price and other parameters except volatility σ into the formula. 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 therefore considered to be closest to the true volatility at that time.

So, what does this increase in the BitVol Index mean to us? It means that market participants’ expectations for future volatility in the Bitcoin market are increasing, and greater price fluctuations may occur. Of course, this is just the expectation of market participants, and we still have to wait and see what actually happens in the future.

What do you think of this BitVol Index? Welcome to speak freely in the comment area and discuss together! 💬