After months of record-breaking gains, Bitcoin’s rallyhas come to a halt. The world’s largest cryptocurrency slipped below $100,000on Tuesday for the first time since June, as investors retreated from digitalassets amid renewed uncertainty over the Federal Reserve’s next policy move.The decline marked a five-month low for Bitcoin, whichfell 6.4% in the last 24 hours to around $99,705. The drop followed a broaderdownturn across the cryptocurrency sector, which has erased nearly $880 billion in totalmarket capitalization over the past month, according to CoinMarketCap data.Bitcoin’s retreat mirrors a wider sell-off in digitalassets. Over the past week, Ethereum has declined by 19.8%, XRP has dropped by 17%,BNB is down 17%, and Solana has lost 21%. Even Dogecoin, often a barometer forretail enthusiasm, has fallen more than 18%.Crypto Market Suffers Sharp PullbackFrom its record high of $126,182 on October 6, Bitcoin has now shed nearly 27% of its value over 29 trading days. Analysts attribute the correction to tightening liquidity conditions and cautious signals from the Fed as the primary catalysts.Keep reading: Bitcoin falls below the $100,000 level for the 1st time since June 23Bitcoin’s momentum has long been sensitive to shiftsin monetary policy. During the pandemic, the token’s value surged as interestrates fell. Conversely, when the Fed tightened policy in 2018, Bitcoin crashedfrom $20,000 to $3,000.This pattern appears to be repeating. Last week, thecentral bank trimmed rates by a quarter-point, but Chair Jerome Powell hintedthat another cut in December was not guaranteed. Fed Governor Lisa Cook echoed that uncertainty on Monday, saying she remained undecided about further easing.October Marks Bitcoin’s Worst Month in a DecadeAccording to CoinMarketCap, Bitcoin’s 3.7% slide inOctober marked its weakest monthly performance since 2018. The broader cryptomarket capitalization fell from $4.32 trillion in early October to $3.3trillion this week.Market observers note that investors are shiftingcapital toward safer assets such as gold and government bonds, anticipatingthat the Fed’s cautious stance could dampen risk appetite.Earlier this year, optimism surrounding pro-cryptolegislation under the Trump administration fueled a rapid climb in digitalasset prices. Bitcoin surged past $110,000 and $120,000 as majorfirms—including Trump Media and Technology Group—announced plans to hold Bitcoin on their balance sheets.The U.S. government’s own holdings, estimated between$15 billion and $20 billion, added to the perception of institutionalconfidence. However, as monetary policy again dominates market sentiment, thosebullish headlines have failed to halt the decline.What’s Next for Bitcoin?Technical charts indicate that Bitcoin is now testing support around $99,044, with the next downside targets located near $97,839 and $94,049. Asustained break below those levels could invite further selling pressure.For now, traders are watching the Fed’s next meetingclosely. Any sign of hesitation on rate cuts could prolong Bitcoin’s downwardmomentum and keep risk appetite subdued heading into year-end.This article was written by Jared Kirui at www.financemagnates.com.