Fund Flow Ratio measures the proportion of on-chain BTC transfers involving exchanges relative to total network-wide transfer activity, reflecting how much of the overall Bitcoin transaction volume is exchange-directed at any given time.
When the ratio is high, a greater share of on-chain activity is flowing through exchanges - indicating that market participants are actively depositing or withdrawing, which historically correlates with periods of elevated trading activity and heightened market participation. Whether this is bullish or bearish depends on the direction of accompanying flow metrics; the Fund Flow Ratio is most useful as a context layer rather than a standalone directional signal.
A low ratio suggests most on-chain activity is occurring outside of exchanges - wallet-to-wallet transfers, self-custody movements, or broader network usage - pointing to relatively lower exchange engagement and often a quieter market environment.
