Bitcoin volatility index dropped to 59.08 yesterday, with a daily decline of 0.56%.

On October 26th, BlockBeats reported that the BitVol (Bitcoin Volatility) index, launched by financial index company T3 Index in partnership with Bitcoin options trading platform LedgerX, fell to 59.08 with a daily decline of 0.56%. The BitVol index measures the 30-day expected implied volatility derived from the prices of tradable Bitcoin options. Implied volatility refers to the volatility implied by the actual option prices and is calculated using the Black-Scholes 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 an option is determined by the competition of many option traders, so implied volatility represents the market participants' views and expectations of the market's future, and is therefore considered the closest estimate of the true volatility at that time.