I have recently lost 49 lbs and though my belly is way smaller it jiggles more, is this because the fat is breaking down? Please advise.

Yes, its because the fat is breaking down and although it feels like its jiggling more, it maybe more on the inside then the outside, so don't worry about it being seen as jiggling. I had realized this a few years ago while losing weight and feeling the jiggling. Good job on the weight, 49 lbs. is a lot to loose. Hope you lost it in a healthy way.