It is bearish for Real World Asset (RWA) projects but not the entire crypto market.
Most RWA is just a fad, it won't have any impact on the entire crypto market.
That was exactly my point. I see a lot of people placing RWA as one of the most important sector in crypto and I'm always wondering why they tend to think like that. Not everything has to be tokenized and onchain. A wise man once said:
if something isn't broken, don't fix it.
RWA outside of crypto just works outside crypto. There's no need to add an extra complexity to everything. Most of the teams raising for RWA is just outright fraud.