The Bitcoin volatility index rose to 78.81 yesterday, approaching its highest value within a year

The BitVol index, launched by financial index company T3 Index in partnership with Bitcoin options trading platform LedgerX, rose to 78.81 yesterday, just below the highest record of 79.92 set on March 4th within a year. Note: The BitVol index measures the expected implied volatility derived from tradable Bitcoin option prices over 30 days. Implied volatility refers to the volatility implied by actual option prices. It is calculated using the B-S option pricing formula, substituting all parameters other than volatility σ into the formula and then deducing it backwards. The actual price of an option is formed through competition among many options traders; therefore, implied volatility represents market participants' views and expectations for future markets and is considered as closest to real-time volatility at that time.