On February 14th, the BitVol (Bitcoin volatility) index launched by financial index company T3 Index in conjunction with Bitcoin options trading platform LedgerX fell to 57.11 yesterday, with a daily decline of 3.02%.

BlockBeats Note: The BitVol index measures the 30-day expected implied volatility derived from tradable Bitcoin option prices. Implied volatility refers to the volatility implied by the actual option price. It is the volatility derived by using the B-S option pricing formula and substituting the actual option price and other parameters except for the volatility σ into the formula.

The actual price of the option is formed by competition among many option traders, so the implied volatility represents the market participants' views and expectations of the future market, and is therefore regarded as the closest to the real volatility at that time.