Bitcoin, the best-performing currency of 2016, has reported its biggest drop in two years just days after reaching a three-year-high of $1,000. Oil market volatility and uneasy market sentiment surrounding US and EU uncertainties saw many turn to Bitcoin as the new ‘haven’ currency in 2016. The looming threat of capital controls in China has put a serious dampener on the surge Bitcoin enjoyed late in 2016, reintroducing some of the volatility for which the cryptocurrency has become renowned. As many economists suspected, with the growth of the Chinese investor class in recent years, Bitcoin appears to have become the main vehicle for virtual capital outflows – in defiance of Chinese currency laws. In response, Chinese officials are now considering strengthening policies to restrict the movement…