BlackRock's iShares Bitcoin Trust (IBIT), the leading exchange-traded fund (ETF) for Bitcoin, has seen a remarkable trend: 69 consecutive days of investor inflows, according to a social media post by Eric Balchunas, a Bloomberg Intelligence ETF analyst. This surge coincides with a pivotal moment for Bitcoin - the fourth halving event.

Every four years or so, Bitcoin undergoes a pre-programmed halving, reducing the number of new coins miners receive as a reward. This latest halving, at block height 840,000, cuts the reward in half, from 6.25 to 3.125 bitcoins. This scarcity measure is designed to limit the total supply of Bitcoin to 21 million, potentially driving up its value in the long run.

While the halving was anticipated to be a bullish event for Bitcoin, recent inflows suggest investors are looking beyond short-term volatility. The geopolitical tensions in the Middle East, particularly the Israel-Iran conflict, have caused some market jitters. Bitcoin, often seen as a hedge against uncertainty, experienced a sell-off last week. As of Monday, the price remains stable around $66,300.

Analysts point to the strengthening US Dollar as a factor in the sell-off. In times of uncertainty, investors often seek "safe haven" assets like the Dollar. Bitcoin's historical volatility makes it a riskier holding in such situations, prompting portfolio managers to reduce their exposure.

Basile Maire, co-founder of decentralized exchange D8X, explains that similar price dips have coincided with Dollar strength in the past. These political events tend to have short-term impacts on the market. Interestingly, Maire suggests that Bitcoin ETF trading might be amplifying the effects of these macro events on Bitcoin's price compared to traditional crypto-only trading.

While Bitcoin might experience sharper declines than traditional assets in the short term due to portfolio management strategies, its potential as a long-term hedge against global uncertainty remains. The consistent inflows into IBIT seem to signal investor confidence in this potential, despite the current market noise.