Bitcoin's volatility index dropped to 58.55 yesterday, down 1.1% for the day.

BlockBeats reported on November 1st that the BitVol (Bitcoin volatility) index, launched by financial index company T3 Index in collaboration with Bitcoin options trading platform LedgerX, fell to 58.55 with a daily decrease of 1.1%. 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, which takes into account the actual option price as well as other parameters besides the volatility σ to calculate the implied volatility. The actual price of the option is formed by the competition of many option traders, therefore, the implied volatility represents the market participants' views and expectations of the future market, and is considered to be the closest to the true volatility at that time.