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Bluesky temporarily halts sign-ups because so many people are joining from Twitter
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No. It's decentralized like the Fediverse, but it doesn't use ActivityPub. I think there are some 3rd party developers working on an ActivityPub-Bluesky bridge, but nothing concrete yet.
Isn't it also just not open to federation at the moment? So the federated/decentralized aspect could just be vaporware and never happen. I don't even begin to take their word for it until it stops being de-facto centralized.
I'm no expert, but I found this blogpost insightful: BlueSky is cosplaying decentralization