I have long held the view that Chinese capital controls is the key driver for Bitcoin price. I wrote about it a few times in the TIB series - see http://mymark.mx/TIB34
Bitcoin price keeps moving ahead on the back of more talk about capital controls in China
Of course the interesting thing to note is that Chinese Bitcoin miners dominate Bitcoin mining. So there is no shortage of Bitcoin in China. With Local Bitcoins service almost uncontrollable - two blokes meet in a street - one can always exchange Bitcoin for local currency (at a price).
Now all you need is to find a way to get China based Bitcoins out of China - encryption and escrow and parallel transactions and VPN and, and, and makes that all doable .
The more the controls edge in the higher the demand will go. An example: I heard the other day a story about the amount of drugs (hidden in various forms) coming across into China from North Korea. Where that stuff flows one way, cash will go the other way.
Good info man, thanks for this!