The Bitcoin volatility index slightly rebounded to 50.47 yesterday

The BitVol index (Bitcoin Volatility), launched by financial index company T3 Index in partnership with options trading platform LedgerX, saw a slight increase yesterday to 50.47, up 0.72% for the day.

Note: The BitVol index measures the expected implied volatility over the next 30 days derived from tradable Bitcoin option prices. Implied volatility refers to the volatility implied by actual option prices. It is calculated using the B-S option pricing formula, substituting all parameters except for volatility σ into the formula.

The actual price of an option is formed through competition among many options traders, therefore, implied volatility represents market participants' views and expectations about future market conditions and is considered to be closest to real-time volatility at that time.