Bitcoin volatility index dropped to 56.37 yesterday, with a daily decline of 2.69%.

BlockBeats reported on November 26th that the BitVol (Bitcoin Volatility) index, launched by financial index company T3 Index in collaboration with Bitcoin options trading platform LedgerX, fell to 56.37 with a daily decline of 2.69%. The BitVol index measures the 30-day expected implied volatility derived from tradable Bitcoin options prices. Implied volatility refers to the volatility implied by actual option prices. It is calculated using the B-S option pricing formula, with actual option prices and other parameters except for volatility σ plugged into the formula to calculate the volatility. The actual price of an option is formed by competition among many option traders, so implied volatility represents market participants' views and expectations of the market's future, and is therefore considered the closest to the actual volatility at that time.