Bitcoin , the cryptocurrency benchmark, has rallied 33% in the past week of trading, while the S&P 500 (SPY Quick QuoteSPY - Free Report) dropped nearly 1%. This performance deviation is a new phenomenon for digital currencies, which until this past week had traded with the stock market.

The high correlation between stocks and cryptos alludes to the assumption that digital currencies are a "risk-on" asset, but Bitcoin's risk profile may be shifting.

The week-long break out in this digital asset class was catalyzed by a vote of confidence from legendary investor George Soros, who is famous for making big money on currency investments. Soros's Bitcoin investment combined with a lack of panic selling from current holders pushed Bitcoin past $55,000 for the first time in about 6 months.

The finicky rally chasers have seemingly all been shaken out of these digital assets, and only true believers willing to stomach considerable short-term volatility are left (or those who forgot their password). I see this is as an overall bullish sign for this nascent market.

I remain skeptical about its utilization as an actually medium of exchange. The only bet I would make in this ambiguous and seemingly baseless market is on Ethereum, which has actually use cases with smart contracts and decentralized applications. Still, there is no way for me to give it any sort of fundamental value.