Bitcoin has ascended to new heights upon cracks in Chinese regulation to limit capital outflows from the country. Outflows from virtual currencies have been material to the point where the Chinese government has sought to regulate the exchanges on which it trades. Nonetheless, those dealing in the currency have decided to push their bitcoin trading off the exchanges and into peer-to-peer trading networks.Despite the recent losses in Bitcoin with the crackdown from the People’s Bank of China (Chinese central bank, often abbreviated PBOC), traders’ informalization of their trading activity has boosted the currency’s value to the 1100/USD mark, just shy of the all-time highs from late-2013.Naturally, China is in the process of regulating capital outflows in order to support the valuation of the yuan. With China’s recent focus on reorienting its economy from an export-based growth model to one that is consumption and investment focused, a rise in the yuan is preferred (the currency can buy more in relative terms). In order to counter the depreciation caused from these outflows, the PBOC must in turn use its foreign currency reserves in order to buoy up the currency.