Blood in the urine could be serious. As Prettykitty said, there could be a bladder infection, or if your cat's a male then he could have the start of a urinary blockage. The cat's urine will form crystals that block the flow of urine, and eventually the cat won't be able to go at all. The bladder can rupture and the urine will back up in the body and eventually the cat will die. Sorry, to be so blunt. But, this isn't a "wait and see" condition whether it's a bladder infection or a blockage.
Oh my, take that cat to the vet. Bleeding when urinating could be a result of a Urinary Tract Infection, very painful for the cat. I'm surprised he hasn't stopped using the box, as most cats associate it with the pain they feel when peeing. The vet will probably give you antibiotics and/or do a biopsy to see if there is blood in the bladder. UTI needs to be under control. Sometimes it comes and goes and so you need to keep an eye on kitty. For now, the only thing you can do is take him to the vet.
If he is bleeding through his butt that would be something different. My cat bleeds through his butt and he was diagnosed with Inflammatory Bowel Disease which can lead to cancer if left untreated. You seriously need to get the cat to a vet.
Good Luck and please let us know how it goes.