Just yesterday we noted the resurgence in Bitcoin as China turmoil accelerates, but overnight (as Yuan weakened further), demand for the cryptocurrency has soared once again, sending the price (in USD) to $875 - the highest since Dec 2013. Bitcoin is up over 10% this week alone.

Bitcoin is soaring...We first warned of this 'outlet' for Chinese capital in September 2015 when Bitcoin was trading around $200...now it is trading at $875

And the massive volume coming from Chinese exchanges suggests where the flow is...

The last 48 hours have seen Chinese Bitcoin prices spike over 12% on heavy volume...

As a reminder, back in 2013, the government classified bitcoin as a commodity and not currency, placing it outside the purview of the foreign-exchange regulator, the people said. That does not mean, however, that China is powerless at limiting bitcoin's upside.

Several Chinese government bodies including the People’s Bank of China and the financial regulators said in a joint notice that year that bitcoin functioned like a digital commodity without the legal status of a currency. The central bank said in January it is studying the prospects of issuing its own digital currency and aims to roll out a product as soon as possible.

While China dominates bitcoin mining and trading, the government has shown caution over its spread in the nation. In 2013, the PBOC barred financial institutions from handling bitcoin transactions.