Is bloody urine a sign that bladder cancer has penetrated the wall of the bladder?

No: The amount of blood seen in the urine does not correlate with the degree of tumor invasion into the bladder muscle. The gold standard to determine the extent of invasion into the bladder muscle is to perform a special biopsy and evaluate for muscle invasion. One can have a little bleeding in the urine with a lot of muscle invasion or a lot of bleeding without muscle invasion.

Bloody urine: Not really. Superficial papillary tumors often bleed more than invasive tumors.