Bitcoin enthusiasts experienced a turbulent day on Tuesday as the leading cryptocurrency faced a nearly 5% drop, slipping below $68,000. This abrupt decline erased gains from a recent bullish run that saw BTC reach $71,950 just last week. Analysts are now working to unravel the reasons behind this sudden slide and anticipate Bitcoin's next moves, especially with the highly anticipated Federal Open Market Committee (FOMC) meeting on the horizon.

The crypto market seems to be reflecting the cautious sentiment prevalent in the broader financial landscape. Investors are adopting a "risk-off" stance as they prepare for the release of crucial economic indicators, including the Consumer Price Index (CPI) and the upcoming FOMC meeting.

The CPI report, a significant gauge of inflation, is expected to provide insights into the state of the US economy. Meanwhile, the FOMC meeting, where the Federal Reserve will make decisions on interest rates, looms as another pivotal event that could significantly impact investor sentiment.

The coming week poses a challenging environment for riskier assets like Bitcoin. The combination of potential interest rate hikes and concerns about inflation is dampening investor enthusiasm. This risk aversion is likely contributing to outflows from Bitcoin, resulting in the observed price decline.

Adding to the intrigue of the price movement was a substantial Bitcoin transfer earlier on Tuesday. A wallet that had been inactive for over five years suddenly became active, transferring a significant amount of Bitcoin to various addresses, including the prominent cryptocurrency exchange Binance. This sudden movement of a large volume of Bitcoin could have prompted short-term volatility in the market.

While the immediate outlook remains uncertain, some analysts maintain optimism about Bitcoin's long-term trajectory. Market observers note that markets are in a "risk-off mode" ahead of the CPI and FOMC meeting. They point to historical instances where FOMC meetings led to price declines followed by bullish reversals, suggesting a potentially positive outcome for Bitcoin in the long run.