by Andrew Marsh, The Daily Grow

Bitcoin surged over $14,000 after the close on Wednesday, with analysts projecting the cryptocurrency to continue to rise in the face of the ongoing US-China trade tensions, while gold fell 1%, cooling off the rally to six year highs.

Emerging market investors appear to be seeking relief in the face of global uncertainty regarding global trade conflicts and US Federal Reserve policy. 

Nisa Amoils, a venture capitalist with New York Angels who invests in the crypto space and the author of WTF Is Happening: Women Tech Founders on the Rise, said the crypto rise is “sustainable” and is based on “fundamentals.” 

“This rally is sustainable, you have clearing, settlement and custodial infrastructure in place where you didn’t have that last time bitcoin rallied,” said Amolis. “This is not just a retail rally, people and traders understand the space better this time around.” 

Gold pulled back from a six-year high on Wednesday, declining nearly 1%, in the face of a slowing economic outlook and low interest rates. Still, investors could be looking for protection against what economists are calling “signs of a downturn.”

Deric Scott , Vice President of metals.com, said gold prices are rising because investors are fearful of a global recession, with Wall Street pricing in an interest rate cut in July. 

“Investors are turning to inflation protection in the form of Bitcoin and gold. We don’t know what will happen. Gold is a safe bet,” Scott said.

As precious metals and cryptos continue their rise, cannabis companies are struggling to gain a footing, with Canopy Growth, falling on slower than expected sales and disappointing earnings. Cannabis giant Tilray disappointed investors with weak earnings, as investors focused on “unsightly gross margins of 23.4%, which, believe it or not, was actually up about 3 percentage points from the sequential fourth quarter,” according to Sean Williams of Motley Fool. 

Investors could be seeking inflationary protection amid global political and economic uncertainty, directly affecting emerging markets like cannabis.