US September CPI index rose and sent Bitcoin sharply lower

This could bring back the prospect of multiple Federal Reserve rate hikes into play.

US inflation rose more than expected in September, perhaps bringing the Fed's multiple interest rate hikes back into play.

According to the Bureau of Labor Statistics' Wednesday morning report, the September consumer price index rose 0.6 percent. This ratio is up from 0.4% in August and in line with economists' forecast for 0.6%.

However, on a year-over-year basis, CPI rose 3.7% versus 3.4% in August and above estimates for 3.6%.

Core CPI - which strips out food and energy costs - also disappointed, rising 0.3% in September. That was the same pace as August, but above consensus forecasts for 0.2%.

Core CPI was 2.6% year-on-year versus 2.4% in the previous month and above estimates for 2.5%.

Bitcoin Bitcoin was down $1,000 at $80,849.65 and is now trading at $82,800.

The bond market is collapsing, with the 10-year U.S. Treasury yield jumping 9.3 basis points to 5.308 percent and the 2-year yield up 13.1 basis points to 4.924 percent.

Nasdaq 100 futures fell 0.65% and S&P 500 fell 0.3%. Each ounce of gold decreased by 1.5% to $4,116.

Prior to the release of the data, a number of Fed speakers had indicated that the central bank would likely raise interest rates by another 25 basis points by the end of the year. Market pricing reflected the information, with most expecting the central bank to hold steady at its next meeting later this month, but hike at the year-end meeting in early December.

This morning's numbers may put a rate hike back on the table in October.

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