Implied Volatility vs Realized Volatility

The annualized standard deviation of price returns implied by the current market price of an option, derived by solving the Black-Scholes model backwards from observed market price; forward-looking measure of expected future volatility; distinct from historical volatility which measures past realized movement.

Historical cryptocurrency price volatility actually experienced over recent periods, measuring actual price movement magnitude from which traders assess risk and compare to implied volatility for options valuation.