It’s not untraceable, but it is anonymous. The problem is a lot of people used the anonymous Bitcoin to buy illegal substances and then used the same, entirely traceable account to buy a new laptop (for instance) from amazon. One can find the details (shipping address, etc.) of the second purchase and connect that to the first purchase.
The traceability of the bitcoins is one of the features of the Blockchain. It makes manipulation of the currency difficult to hide. Financial auditing has full information when they look at what has gone on for the entire history of the Bitcoin chain. The account is anonymous, but all the transactions are out in the open.
Nothing stops you from making many accounts though, to keep different types of purchases separate.
