If by fungible you mean that Bitcoin is traceable, then yes, this is correct for Bitcoin. There is a misconception going around that blockchains are anonymous while 99% of them are quite the opposite and rather transparent. Bitcoin is pseudonymous, but whenever you make an action that links your identity to your wallet you lose your privacy. There are ways around it, but I personally would not bet on these in the long run, with advances in computing and AI I am sure at some point even the most anonymous blockchains can be deciphered..

I wrote a lengthy post about this subject a few days ago, maybe you'd like to read it.https://steemit.com/cryptocurrency/@pandorasbox/why-bitcoin-and-the-blockchain-will-not-bring-the-libertarian-utopia-you-desire-the-future-is-not-anonymous-and-perhaps-not-even

By the way, if it's anonymity you are after, the best way apparantly is through Monero which offers the most anonymous features. Stratis is releasing their Tumblebit feature which may or may not be as good. My suggestion is to avoid all methods that could one day lead to authorities thinking you tried to launder money... It's best to stay on the safe side and stay legal, because you can be certain that one day in the not too distant future the tax man will have teams working on analyzing the blockchain and tracking all the money.
I think it will still be some years away though.

I upvoted and am following you, would really appreciate if you followed back!