Probably started as a bluff. But just like in poker, that bluff might play out to the end. I don't think even Putin is certain as to what he'll eventually do at this point. The situation is fluid as NATO troop/asset movements continue to take place. As usual, the answer is 'It Depends.'
If it's anything like the GOP whom you love, there'll be lots of noise, lots of dancing around with pants on fire, chaos, conspiracy theories left right and centre, mayhem and inner destruction, but for the rest of us life will continue on unabated.