The Bitcoin volatility index has maintained a downward trend for nearly a month and has fallen to the low level of February this year.

According to data from T3 Index, a financial index company, and LedgerX, a Bitcoin options trading platform, the BitVol (Bitcoin volatility) index launched by the two companies has maintained a downward trend for nearly a month. As of May 19th, the index had fallen to 52.52, a low level not seen since February of this year, with a decline of 5.49% from the previous day. The BitVol index measures the 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 calculated using the B-S option pricing formula, with the actual option price and other parameters except for the volatility σ plugged into the formula to derive the volatility. The actual price of the option is formed by the competition of many option traders, so implied volatility represents the market participants' view and expectation of the market's future, making it the closest approximation of the true volatility at the time.