# How Is Historical Volatility Calculated for a Cryptocurrency? ⎊ Path

**Published:** 2025-12-04
**Author:** Greeks.live
**Categories:** Path

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## How Is Historical Volatility Calculated for a Cryptocurrency?

Historical volatility (HV) is calculated by measuring the standard deviation of the underlying cryptocurrency's price returns over a specified past period (e.g. 30, 60, or 90 days).

This statistical measure provides an objective look at how much the asset's price has fluctuated in the past, often serving as a benchmark for estimating future volatility.

- [What Is ‘Slippage’ and How Does Latency Exacerbate It?](https://learn.greeks.live/path/what-is-slippage-and-how-does-latency-exacerbate-it/)

- [How Does Implied Volatility in Options Differ from Historical Volatility in Cryptocurrency Prices?](https://learn.greeks.live/path/how-does-implied-volatility-in-options-differ-from-historical-volatility-in-cryptocurrency-prices/)

- [How Is Volatility Measured for Cryptocurrencies Given Their 24/7 Trading Cycle?](https://learn.greeks.live/path/how-is-volatility-measured-for-cryptocurrencies-given-their-24-7-trading-cycle/)

- [How Do Institutional Traders Use ‘Algorithmic Execution’ Strategies to Minimize VWAP Deviation?](https://learn.greeks.live/path/how-do-institutional-traders-use-algorithmic-execution-strategies-to-minimize-vwap-deviation/)

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- [How Is ‘Impermanent Loss’ Calculated in a Standard AMM Liquidity Pool?](https://learn.greeks.live/path/how-is-impermanent-loss-calculated-in-a-standard-amm-liquidity-pool/)

- [How Does a ‘Deviation Threshold’ Affect a Data Feed Update?](https://learn.greeks.live/path/how-does-a-deviation-threshold-affect-a-data-feed-update/)

- [What Is the Difference between “Implied Volatility” and “Historical Volatility”?](https://learn.greeks.live/path/what-is-the-difference-between-implied-volatility-and-historical-volatility/)

## Glossar

### [Historical Volatility](https://learn.greeks.live/area/historical-volatility/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)

Evidence ⎊ This metric is derived from the time-series of past asset prices, representing the actual realized dispersion of returns over a defined historical window.

### [Standard Deviation](https://learn.greeks.live/area/standard-deviation/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)

Deviation ⎊ Standard Deviation is a fundamental statistical measure quantifying the amount of variation or dispersion of a set of values, specifically asset returns, from their mean.

### [Statistical Measure](https://learn.greeks.live/area/statistical-measure/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)

Metric ⎊ A statistical measure in finance quantifies specific characteristics of market data, providing objective insights into price movements and risk profiles.

### [Price Returns](https://learn.greeks.live/area/price-returns/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)

Yield ⎊ Price returns, within cryptocurrency and derivatives markets, represent the proportional change in an asset’s value over a defined period, frequently annualized for comparability.

## Discover More

### [What Is the Difference between Historical and Hypothetical Stress Testing?](https://learn.greeks.live/path/what-is-the-difference-between-historical-and-hypothetical-stress-testing/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![What Is the Difference between Historical and Hypothetical Stress Testing?](https://learn.greeks.live/wp-content/uploads/2025/10/Abstract-Visualization-of-Digital-Asset-Volatility-Mechanism-within-Decentralized-Finance-Protocol-Structures.webp)

Historical uses data from actual past events; hypothetical uses fabricated, extreme but plausible scenarios that may not have occurred, both for severe conditions.

### [How Is Impermanent Loss Calculated?](https://learn.greeks.live/path/how-is-impermanent-loss-calculated/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![How Is Impermanent Loss Calculated?](https://learn.greeks.live/wp-content/uploads/2025/10/Asymmetrical-Balance-of-Digital-Asset-Execution-Versus-Volatility-Surface-Contraction-in-DeFi-Protocols.webp)

Impermanent loss is the difference in value between holding assets in a wallet versus holding them in a liquidity pool.

### [How Is Implied Volatility (IV) Calculated for Bitcoin Options?](https://learn.greeks.live/path/how-is-implied-volatility-iv-calculated-for-bitcoin-options/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![How Is Implied Volatility (IV) Calculated for Bitcoin Options?](https://learn.greeks.live/wp-content/uploads/2025/10/Futuristic-Digital-Asset-Settlement-Mechanism-Representing-Exotic-Option-Pricing-Convergence-Spheres.webp)

It is derived by reverse-engineering the option's market price using a pricing model like Black-Scholes.

### [How Does Implied Volatility Differ from Historical Volatility in Options Pricing?](https://learn.greeks.live/path/how-does-implied-volatility-differ-from-historical-volatility-in-options-pricing-2/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![How Does Implied Volatility Differ from Historical Volatility in Options Pricing?](https://learn.greeks.live/wp-content/uploads/2025/10/Interplay-of-Volatility-Surface-Structures-and-Collateralized-Debt-Positions-in-Digital-Asset-Derivatives.webp)

HV is past price fluctuation; IV is the market's forward-looking expectation of future volatility, which directly determines the option's price.

### [How Is the Loss Amount Calculated for Socialization?](https://learn.greeks.live/path/how-is-the-loss-amount-calculated-for-socialization/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![How Is the Loss Amount Calculated for Socialization?](https://learn.greeks.live/wp-content/uploads/2025/10/Dynamic-Bifurcation-of-Cream-and-Obsidian-Surfaces-Representing-Decentralized-Finance-Option-Strike-Pricing-Mechanisms.webp)

The total net deficit after insurance fund depletion is distributed proportionally based on the size and profitability of opposing profitable positions.

### [How Is the "Best Bid and Offer" (BBO) Calculated across Multiple Cryptocurrency Exchanges?](https://learn.greeks.live/path/how-is-the-best-bid-and-offer-bbo-calculated-across-multiple-cryptocurrency-exchanges/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![How Is the "Best Bid and Offer" (BBO) Calculated across Multiple Cryptocurrency Exchanges?](https://learn.greeks.live/wp-content/uploads/2025/10/Precision-Gantry-Mechanism-Illustrating-Complex-Algorithmic-Arbitrage-Execution-in-DeFi-Swaps.webp)

The BBO is the highest bid (NBB) and lowest offer (NBO) across all monitored exchanges, serving as the benchmark for execution quality.

### [How Does EIP-1559 Change the Way Ethereum Transaction Fees Are Calculated?](https://learn.greeks.live/path/how-does-eip-1559-change-the-way-ethereum-transaction-fees-are-calculated/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![How Does EIP-1559 Change the Way Ethereum Transaction Fees Are Calculated?](https://learn.greeks.live/wp-content/uploads/2025/10/Cryptocurrency-Volatility-Skew-Hedging-Mechanism-Depicting-Exotic-Option-Payoff-Structures.webp)

EIP-1559 introduced a burning BASE FEE and an optional PRIORITY FEE (tip) for miners, making fees more predictable than the old auction system.

### [How Is Historical Volatility Typically Annualized for Comparison with Implied Volatility?](https://learn.greeks.live/path/how-is-historical-volatility-typically-annualized-for-comparison-with-implied-volatility/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![How Is Historical Volatility Typically Annualized for Comparison with Implied Volatility?](https://learn.greeks.live/wp-content/uploads/2025/10/Symmetric-Quadrant-Deployment-Mechanism-Illustrating-Decentralized-Autonomous-Organization-Governance-Structure.webp)

HV is annualized by multiplying daily volatility by the square root of the number of trading days in a year (e.g. sqrt of 365).

### [What Is a 'Lookback Period' in Historical Volatility Margin Models?](https://learn.greeks.live/path/what-is-a-lookback-period-in-historical-volatility-margin-models/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![What Is a 'Lookback Period' in Historical Volatility Margin Models?](https://learn.greeks.live/wp-content/uploads/2025/10/Conceptual-Depiction-of-Exotic-Options-Payoff-Structure-Through-Planetary-Probe-Simulation.webp)

The historical time frame used to analyze past price data for volatility estimation; shorter periods are more reactive but procyclical, longer periods are smoother.

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**Original URL:** https://learn.greeks.live/learn/how-is-historical-volatility-calculated-for-a-cryptocurrency/
