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Bitcoin charges above the $17,000 mark but misgivings remain among traders ahead of CPI, Fed comments and amid a brewing storm at Digital Currency Group. 3813 Total views 55 Total shares Listen to article 0:00 Markets News Ho-ho-ho! Get Limited Holiday Trait!Collect this article as an NFT Bitcoin (BTC) starts a new week on a promising footing with BTC price action near one-month highs can it last?

In a new years boost to bulls, BTC/USD is currently surfing levels not seen since mid-December, with the weekly close providing cause for optimism.

The move precedes a conspicuous macroeconomic week for crypto markets, with the December 2022 Consumer Price Index (CPI) print due from the United States.

Jerome Powell, Chair of the Federal Reserve, will also deliver a speech on the economy, with inflation on everyones radar.

Inside the crypto sphere, FTX contagion continues, with Digital Currency Group (DCG) at odds with institutional clients over its handling of solvency problems at subsidiary Genesis Trading.

At the same time, under the hood, Bitcoin still shows signs of recovery from the FTX turmoil, with miners among those catching a break.

Cointelegraph takes a look at these factors and more as the second trading week of January gets underway.Bitcoin price passes $17,000

Bitcoin managed to spike higher at the Jan. 9 weekly close, hitting levels absent from the chart since Dec. 16.

Data from Cointelegraph Markets Pro and TradingView shows local highs coming in at $17,250 on Bitstamp.BTC/USD 1-day candle chart (Bitstamp). Source: TradingView

Despite only adding several hundred dollars, the move on BTC/USD did not go unnoticed given the extremely compressed trading range in place for many previous weeks.

Nonetheless, eyeing potential continuation, traders were less than willing to change their longer-term conservative perspective.

Onwards and upwards to my $17,300 – $17,500 target, Crypto Tony told Twitter followers in an update on the day:I have taken some profit here on my scalp long, and remain in my short as long as we are below 17,500 on 4 hour closure.

Michal van de Poppe, founder and CEO of trading firm Eight, likewise left the door open for some modest upside continuation, but warned that the start of the week would present hurdles.

Still watching a case like this on Bitcoin, he confirmed alongside an explanatory chart:I think well continue rallying coming week, but probably have a drop due to Gemini or correction on Monday first.BTC/USD annotated chart. Source: Michal van de Poppe/ Twitter

Meanwhile, Venturefounder, a contributing analyst at on-chain analytics platform CryptoQuant, reminded investors to zoom out.

Bitcoin has been stuck between $16k and $18.5k for 2 months now, he acknowledged:Watch this range very very carefully, a break from either direction can bring 20% volatility, could happen soon. A definitive break of $16k could see $13k, make $18.5k support we can see $22.5k.BTC/USD annotated chart. Source: Venturefounder/ TwitterCPI countdown returns as risk asset traders eye volatility

All eyes, including those of the Federal Reserve, are on inflation data this week with the December print of the Consumer Price Index (CPI) due for release.

CPI, which will greet markets on Jan. 12, is a key component of Fed policy, and traders and analysts alike are keenly aware that the signals it provides can lead to shifts in its stance.

Recently, CPI has been declining, hinting that the Feds existing interest rate hikes have had a positive impact on inflation.

Should this continue or even decline more than expected, hopes that the Fed will decrease rate hikes faster or even cancel them altogether will increase.

This, in turn, provides a window for risk assets including crypto to gain, as Fed policy easing ignites appetite for risk.

Expecting enormous volatility. Huge cash position and light position size for me, Ted Zhang, trader and research analyst at Revere Asset Management, told Twitter followers, describing the CPI event as a huge week.

Others noted the unusual timing of the CPI schedule, with the data coming two days after a speech on the economy by Fed Chair, Jerome Powell.

Unfortunately or fortunately the speech is on Tuesday while cpi on Thursday so any hawkishness will be undone post cpi numbers on Thursday! one response read, adding that market reactions to Powells speech may well amount to noise.

According to CME Groups FedWatch Tool, the chances of a 25-basis-point rate hike this month currently stand at 75% versus a 25% chance of a large 50-basis-point move.Fed target rate probabilities chart. Source: CME Group/ Twitter

Long term, skeptics including Big Short investor Michael Burry maintain that inflation will return, with the Fed obliged to raise rates again as a result.

CPI inflation is unlikely to fall as low as 2%, let alone go negative, gold bug Peter Schiff wrote in a response to Burry last week:But I agree with you that the Fed will return to QE and the official inflation rate will hit a new high. The unofficial actual rate will hit a new all-time record high.DCG publicly faces the music

As the fallout from the FTX saga rolls on, it is institutional investment giant Digital Currency Group (DCG) coming in for a grilling this month.

Exposure to FTX heightened pressure on certain DCG subsidiaries in an increasingly complex story which has even raised questions about the future of the largest institutional Bitcoin investment vehicle.

The Grayscale Bitcoin Trust (GBTC) currently has BTC assets under management in excess of $10 billion. Its share price, according to data from Coinglass, trades at an implied 44% discount to the Bitcoin spot price.

As Cointelegraph reported, exchange Gemini has had some of its assets frozen in DCG firm Genesis Trading after it halted withdrawals in light of FTX. Its co-founder, Cameron Winklevoss, has publicly appealed to DCG CEO, Barry Silbert, for answers.

Jan. 8, he wrote in an open letter to Silbert, marking a deadline for the situation to be resolved, but with time up, Silbert himself disputes this.

DCG delivered to Genesis and your advisors a proposal on December 29th and has not received any response, he claimed in part of a Twitter response to Winklevoss on Jan. 2.

Should events take an unpredictable turn, the implications for Bitcoin markets may become more serious, with DCGs prominence as an investment entity making the debacle particularly conspicuous.

Describing recent events, Checkmate, lead on-chain analyst at Glassnode, said that DCG was continuing to blow up in slow motion.

And Bitcoin price is basically a stablecoin, he added.

2023 all depends on DCG at this point, Justin Herberger, author of the Invest and Prosper newsletter, meanwhile forecast:If they somehow collapse, its gonna get ugly. That could be our last leg down to 85% draw down from Bitcoin ATHs.GBTC premium vs. asset holdings vs. BTC/USD chart. Source: CoinglassMiners break severe selling streak

Bitcoin miners have been on the radar for most of 2022, but the BTC price dip which followed the FTX implosion worsened an already tenuous situation.

Miners began to divest themselves of their stored Bitcoin in order to remain financially viable, and on-chain metrics swiftly warned of a miner capitulation already in progress.

As Cointelegraph reported, however, neither the extent of the sell-off nor its duration appeared critical, and recently, the situation has stabilized.

The heavy sell pressure from Bitcoin miners that has barraged the market for the last 4 months has finally subsided for now, William Clemente, founder of crypto research firm Reflexivity, summarized alongside data from on-chain analytics firm Glassnode this weekend.

That data showed the 30-day net position change for Bitcoin miners, this in fact beginning to increase versus the month prior.Bitcoin miner net position change chart. Source: William Clemente/ Twitter

Separate Glassnode data supported the observation, with miners BTC reserves hitting their highest in a month on Jan. 8.Bitcoin miner balanc chart. Source: Glassnode/ Twitter

Eyeing Bitcoins hash rate the estimated processing power dedicated to mining Jan Wuestenfeld, analyst at crypto research and advisory firm Quantum Economics, was equally upbeat on the status quo.

It is crazy how the hashrate, albeit miners coming under heavy pressure, has only corrected a bit over the last two months of 2022 and now is even increasing considering the 30-day moving average, he noted.

Last week, Bitcoins network difficulty adjusted downward by around 3.6%, taking into account a drop in competition among active miners. According to the latest forecast from BTC.com, however, the next adjustment will wipe out those losses to add 9% to the difficulty level, in so doing marking a fresh all-time high.Bitcoin network fundamentals overview (screenshot). Source: BTC.comExtreme fear meets 18-month crypto volume lows

Crypto market sentiment is as unsure as ever when it comes to the near-term outlook, according to the Crypto Fear & Greed Index.

Related:Macroeconomic data points toward intensifying pain for crypto investors in 2023

Over the weekend, the Index, which compiles a sentiment score from a basket of weighted triggers, dipped back into the top of its most bearish bracket, extreme fear.

A first for 2023, extreme fear is nonetheless familiar to longtime market participants, who watched as sentiment endured its longest-ever stint in the Indexs lowest zone last year. Crypto Fear & Greed Index (screenshot). Source: Alternative.me

At the same time, interaction with crypto appears noticeably lacking at current price levels.

Data from research firm Santiment has captured the lowest transaction volume across crypto since mid-2020.

Altcoin volume is particularly low, a note to an accompanying chart stated.Bitcoin spent output value bands annotated chart. Source: CryptoBitcoinChris/ Twitter

Separate numbers from CryptoQuantflagged by popular social media commentator CryptoBitcoinChris nonetheless noted that whale selling had also decreased since December, this potentially setting a trend and positive effect on market sentiment.

The views, thoughts and opinions expressed here are the authors alone and do not necessarily reflect or represent the views and opinions of Cointelegraph. #Bitcoin #Bitcoin Price #Bitcoin Mining #Markets #Inflation Related News How to get a job in the Metaverse and Web3 Belgian MP receives Bitcoin salary for a year: Heres what he learned Biggest week of the year 5 things to know in Bitcoin this week Bitcoin sees CPI volatility as lower inflation sends BTC price to $18K Bitcoin traders await FOMC, Powell as BTC price hits new 1-month high

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What a Trump presidency would mean for global wars and European security

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What a Trump presidency would mean for global wars and European security

Donald Trump says he would end Russia’s war in Ukraine should he return to the White House – but any rushed deal will likely leave Kyiv much weaker and European security in even greater peril.

Another major flashpoint a Trump presidency would immediately seek to influence is the escalating conflict between Iran and Israel.

Mr Trump came close to direct war with Tehran during his first term in office and prior restraint could well give way to direct confrontation this time around.

US election latest: Harris and Trump make final pitches

Then there is the overwhelming longer-term challenge posed by China, with North Korea another growing headache especially after Mr Trump tried but failed to woo the leader of the hermit state during his first stint as commander-in-chief.

President Donald Trump meets North Korean leader Kim Jong Un, Wednesday, Feb. 27, 2019, in Hanoi. (AP Photo/ Evan Vucci)
Image:
Mr Trump meets North Korean leader Kim Jong Un in 2019. Pic: AP

With the US election on a knife edge, hostile and friendly capitals around the world have been gaming what a second Trump White House might mean for their respective national interests and for the most pressing global security threats.

Mr Trump’s track record of unpredictability is a challenge for traditional foes – but also for Washington’s closest allies, in particular fellow members of the NATO alliance.

The Republican nominee has made no secret of his frustration at how the US has for decades bankrolled the security blanket that protects Europe.

During his first term as president, Mr Trump threatened to withdraw the US from the alliance – a move that would almost certainly sound its death knell. His rhetoric did help to spur allies to dig deeper into their pockets and spend more on their militaries, though.

But the damage of years of underinvestment is deep and the pace of recovery is too slow for European NATO allies and Canada to credibly stand on their own as a potent military force any time soon.

Republican presidential nominee and former U.S. President Donald Trump and Ukraine's President Volodymyr Zelenskiy meet at Trump Tower in New York City, U.S., September 27, 2024. REUTERS/Shannon Stapleton REFILE - QUALITY REPEAT
Image:
Meeting Volodymyr Zelenskyy in New York in September – but what would a Trump presidency mean for Ukraine’s war with Russia? Pic: Reuters

In terms of immediacy when it comes to global crises, the impact of a Trump victory on 5 November would be felt most acutely by Ukraine and also by Iran.

The presidential candidate has repeatedly claimed that he would quickly end the Ukraine war, though without explaining how or what peace would look like.

In an indication of where his priorities lie, however, he has accused Ukrainian President Volodymyr Zelenskyy of being the “greatest salesman on earth” for securing tens of billions of dollars in weapons and other assistance that Washington has given to Kyiv.

Russia's President Vladimir Putin and U.S. President Donald Trump are seen during the G20 summit in Buenos Aires, Argentina November 30, 2018. REUTERS/Marcos Brindicci
Image:
Pic: Reuters

Yet – coupled with Ukraine’s willingness to fight – that military aid is the biggest reason why Ukraine has managed to withstand almost 1,000 days of Vladimir Putin’s war.

Stop the flow of American weapons, and Ukrainian troops – despite their own ingenuity and the support of other allies – will simply lack the firepower to keep resisting the onslaught.

Democratic presidential nominee and U.S. Vice President Kamala Harris meets with Ukraine's President Volodymyr Zelenskiy, in the Eisenhower Executive Office Building on the White House campus in Washington, U.S., September 26, 2024. Ukrainian Presidential Press Service/Handout via REUTERS ATTENTION EDITORS - THIS IMAGE HAS BEEN SUPPLIED BY A THIRD PARTY.
Image:
Kamala Harris believes US support for Mr Zelenskyy and Ukraine is vital. Pic: Reuters

By contrast, US vice president Kamala Harris, who is vying for the top job, has made clear that she views continued support to Ukraine as being as vital to US and Western interests as it is to Kyiv’s – a far more familiar stance that echoes the view of her NATO partners.

While US support for Ukraine would undoubtedly change under a Trump administration, that is not the same as facilitating a complete surrender.

The former president – who portrays himself as the ultimate dealmaker and has adopted a new election slogan – “Trump will fix it” – will not want to be held responsible for the total absorption of Ukraine into Mr Putin’s orbit.

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How does the US election work?

Putin and Iran

His relationship with the Russian president is a particularly interesting dynamic.

When president, he infamously said he trusted Mr Putin’s denials over his own intelligence agencies when it came to claims about Russian interference in the 2016 US election.

But with the right advice, might a future President Trump be able to use his connection with Mr Putin to the West’s advantage?

At the very least, it adds a new level of unpredictability – which is perhaps the most important element when it comes to assessing the potential impact on the world of a second Trump term.

Donald Trump said 'as long as I'm President of the United States, Iran will never be allowed to have a nuclear weapon'
Image:
Donald Trump said in 2020 ‘as long as I’m president of the United States, Iran will never be allowed to have a nuclear weapon’. Pic: Reuters

On Iran, in stark contrast to his approach to Russia’s war in Ukraine, a future President Trump may well back much greater US military support for Israel’s conflict against Tehran and its proxies – perhaps even direct involvement by US forces in strikes on Iran.

Mr Trump has an even tougher stance towards Tehran and its nuclear ambitions than Joe Biden’s administration.

His decision to rip up a major nuclear deal with Iran was one of his most significant foreign policy acts during his four years as president.

It is also personal, with Iran accused of hacking the Trump campaign in recent months – an attack that would surely only heighten tensions with Iran during any second Trump term.

On election night, Sky News will have access to the most comprehensive exit poll and vote-counting results from every state, county and demographic across America through its US-partner network NBC.

You can find out more about Sky News’ coverage here.

Continue Reading

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What a Trump presidency would mean for global wars and European security

Published

on

By

What a Trump presidency would mean for global wars and European security

Donald Trump says he would end Russia’s war in Ukraine should he return to the White House – but any rushed deal will likely leave Kyiv much weaker and European security in even greater peril.

Another major flashpoint a Trump presidency would immediately seek to influence is the escalating conflict between Iran and Israel.

Mr Trump came close to direct war with Tehran during his first term in office and prior restraint could well give way to direct confrontation this time around.

US election latest: Harris and Trump make final pitches

Then there is the overwhelming longer-term challenge posed by China, with North Korea another growing headache especially after Mr Trump tried but failed to woo the leader of the hermit state during his first stint as commander-in-chief.

President Donald Trump meets North Korean leader Kim Jong Un, Wednesday, Feb. 27, 2019, in Hanoi. (AP Photo/ Evan Vucci)
Image:
Mr Trump meets North Korean leader Kim Jong Un in 2019. Pic: AP

With the US election on a knife edge, hostile and friendly capitals around the world have been gaming what a second Trump White House might mean for their respective national interests and for the most pressing global security threats.

Mr Trump’s track record of unpredictability is a challenge for traditional foes – but also for Washington’s closest allies, in particular fellow members of the NATO alliance.

The Republican nominee has made no secret of his frustration at how the US has for decades bankrolled the security blanket that protects Europe.

During his first term as president, Mr Trump threatened to withdraw the US from the alliance – a move that would almost certainly sound its death knell. His rhetoric did help to spur allies to dig deeper into their pockets and spend more on their militaries, though.

But the damage of years of underinvestment is deep and the pace of recovery is too slow for European NATO allies and Canada to credibly stand on their own as a potent military force any time soon.

Republican presidential nominee and former U.S. President Donald Trump and Ukraine's President Volodymyr Zelenskiy meet at Trump Tower in New York City, U.S., September 27, 2024. REUTERS/Shannon Stapleton REFILE - QUALITY REPEAT
Image:
Meeting Volodymyr Zelenskyy in New York in September – but what would a Trump presidency mean for Ukraine’s war with Russia? Pic: Reuters

In terms of immediacy when it comes to global crises, the impact of a Trump victory on 5 November would be felt most acutely by Ukraine and also by Iran.

The presidential candidate has repeatedly claimed that he would quickly end the Ukraine war, though without explaining how or what peace would look like.

In an indication of where his priorities lie, however, he has accused Ukrainian President Volodymyr Zelenskyy of being the “greatest salesman on earth” for securing tens of billions of dollars in weapons and other assistance that Washington has given to Kyiv.

Russia's President Vladimir Putin and U.S. President Donald Trump are seen during the G20 summit in Buenos Aires, Argentina November 30, 2018. REUTERS/Marcos Brindicci
Image:
Pic: Reuters

Yet – coupled with Ukraine’s willingness to fight – that military aid is the biggest reason why Ukraine has managed to withstand almost 1,000 days of Vladimir Putin’s war.

Stop the flow of American weapons, and Ukrainian troops – despite their own ingenuity and the support of other allies – will simply lack the firepower to keep resisting the onslaught.

Democratic presidential nominee and U.S. Vice President Kamala Harris meets with Ukraine's President Volodymyr Zelenskiy, in the Eisenhower Executive Office Building on the White House campus in Washington, U.S., September 26, 2024. Ukrainian Presidential Press Service/Handout via REUTERS ATTENTION EDITORS - THIS IMAGE HAS BEEN SUPPLIED BY A THIRD PARTY.
Image:
Kamala Harris believes US support for Mr Zelenskyy and Ukraine is vital. Pic: Reuters

By contrast, US vice president Kamala Harris, who is vying for the top job, has made clear that she views continued support to Ukraine as being as vital to US and Western interests as it is to Kyiv’s – a far more familiar stance that echoes the view of her NATO partners.

While US support for Ukraine would undoubtedly change under a Trump administration, that is not the same as facilitating a complete surrender.

The former president – who portrays himself as the ultimate dealmaker and has adopted a new election slogan – “Trump will fix it” – will not want to be held responsible for the total absorption of Ukraine into Mr Putin’s orbit.

Please use Chrome browser for a more accessible video player

How does the US election work?

Putin and Iran

His relationship with the Russian president is a particularly interesting dynamic.

When president, he infamously said he trusted Mr Putin’s denials over his own intelligence agencies when it came to claims about Russian interference in the 2016 US election.

But with the right advice, might a future President Trump be able to use his connection with Mr Putin to the West’s advantage?

At the very least, it adds a new level of unpredictability – which is perhaps the most important element when it comes to assessing the potential impact on the world of a second Trump term.

Donald Trump said 'as long as I'm President of the United States, Iran will never be allowed to have a nuclear weapon'
Image:
Donald Trump said in 2020 ‘as long as I’m president of the United States, Iran will never be allowed to have a nuclear weapon’. Pic: Reuters

On Iran, in stark contrast to his approach to Russia’s war in Ukraine, a future President Trump may well back much greater US military support for Israel’s conflict against Tehran and its proxies – perhaps even direct involvement by US forces in strikes on Iran.

Mr Trump has an even tougher stance towards Tehran and its nuclear ambitions than Joe Biden’s administration.

His decision to rip up a major nuclear deal with Iran was one of his most significant foreign policy acts during his four years as president.

It is also personal, with Iran accused of hacking the Trump campaign in recent months – an attack that would surely only heighten tensions with Iran during any second Trump term.

On election night, Sky News will have access to the most comprehensive exit poll and vote-counting results from every state, county and demographic across America through its US-partner network NBC.

You can find out more about Sky News’ coverage here.

Continue Reading

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‘My family are all Republicans but half are voting Democrat,’ says Arizona voter as swing states prepare for election

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'My family are all Republicans but half are voting Democrat,' says Arizona voter as swing states prepare for election

The sprawling state of Arizona was once reliably Republican but in 2020 that changed.

Joe Biden became only the second Democrat to win here since 1948, winning by less than 11,000 votes, and polling suggests Arizona could once again be won and lost by the narrowest of margins.

Above Phoenix, Dobbins Lookout provides a panoramic view of the rugged Grand Canyon State.

Many of the people there to watch the Friday night sunset were contemplating a consequential decision.

Those include Jennifer Montero and her fiance Richie Garcia, who say their vote on Tuesday is based on their economic circumstances.

“Prices have gone up like crazy,” said Ms Montero, “and then, especially now that I’m wanting to get married and have kids, I definitely want to be able to go to McDonald’s and afford a spicy for a dollar like they used to be.”

Until 2020, Arizona was reliably Republican
Image:
Until 2020, Arizona was reliably Republican

The couple are of Mexican descent, in a state where one in four voters are Latin American and the debate about immigration is complicated.

More on Arizona

For Mr Garcia, being born in America means the border is less of a concern.

“Times are changing. I think a lot of the Hispanic community was very inclined to vote Democrat due to immigration status, but my parents are citizens. I believe that immigration status doesn’t really matter to me much anymore,” he said.

Less than 30 minutes away in downtown Phoenix, people were already beginning to vote at a drive-through polling centre.

Rene Rojas, a life-long Republican who voted Democrat for the first time
Image:
Renee Rojas, a lifelong Republican who is voting Democrat for the first time

One of them was Renee Rojas, a lifelong Republican voting Democrat for the first time.

Ms Rojas, who is of Native American and Latino descent, says that decision is down to Donald Trump.

“Recent rhetoric and the changes of the Republican Party just made me realise that things are not going the way they should be,” she said, before adding, “My mom, my grandmother is a Republican. She’s Navajo. You know, my other family members and friends, they’re all Republicans, but half of them are voting Democrat this year.”

US election latest: Harris and Trump make late bid to woo voters

Ms Rojas’s thoughts on the prospect of trouble after the result are a reminder of the strong Conservative values of the state she lives in.

“I’m an Arizonan. I have a gun myself, I have several different kinds of firearms, heavy machine guns and handguns. So I am a proud gun holder and people will demonstrate the way they want to as long as they’re not hurting anybody.”

A drive-through polling centre in downtown Phoenix
Image:
A drive-through polling centre in downtown Phoenix

For other drive-through voters like Peter Orozco, the choice was a simple one, about stability.

He feels the current administration will maintain the foreign policy status quo.

“We can’t politically make any big changes, especially on an international scale, you know, because if we get somebody else president other than what the existing presidency is, it could be World War Three,” he said.

26-year-old mortgage broker Dane Jenson (right) made a joke "Swifties for Trump" sign in Arizona
Image:
Mortgage broker Dane Jensen (R)

In Arizona, there are other voters who feel the state is worse off since the Democrats came to power.

They include Dane Jensen, a 26-year-old mortgage broker.

For the last few days, Mr Jensen has been standing outside another polling station in Scottsdale with a “Swifties for Trump” banner.

He made the banner as a joke to try to ruffle the feathers of people voting for the Democratic party, which the singer has endorsed.

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About Swift, he said: “That’s like someone like that who has a private jet and is flying around the country who is, in my opinion, creating more fossil fuels and bad energy for the environment than any one person.

“And for you to sit there on your high horse and billions of dollars, and tell people what you think should happen when you’re already set for life, I don’t really agree with that.”

Read more:
Should we fear Trumponomics?

University students handed cookies for voting early
What happens if there’s a tie in the US election?

Beyond celebrity endorsements is an economic and social reality in Arizona, which Mr Jensen and all the voters in the state will recognise.

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“I’m born and raised here. So I know that area as well as anyone. But, you know, crime, the border economy, those are really important issues, they’re everyday issues,” he said.

It’s those everyday issues in a handful of vital places like Arizona that will decide an election hinging on the tightest of margins.

On the night, Sky News will have access to the most comprehensive exit poll and vote-counting results from every state, county and demographic across America through its US-partner network NBC.

You can find out more about Sky News’ coverage here.

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