What is DVOL?
DVOL is a volatility index published by Deribit, the largest crypto options exchange. It is calculated from Bitcoin option prices and shows the annualised volatility traders expect over the next 30 days — the crypto equivalent of the VIX.
How to use it
A rising DVOL means traders are paying more for protection or for leverage, usually because they expect a big move. Very low DVOL shows complacency. Comparing DVOL with realized volatility tells you whether options are expensive or cheap relative to what the market is actually doing.