Most of us had to go down the Bitcoin rabbit hole quite a distance before learning that KYC is not a fried chicken franchise. So a great percentage of the BTC we hodl is most certainly trackable by any government agencies with access to bank data. I don't believe that coin mixing or shape-shifting to Monero etc can offer much protection from any form of oppressive state persecution however. And I must wonder if acquisitions of Bitcoin from non-KYC sources (Bisq, HodlHodl, RoboSats etc) can really protect against such persecutions either. It seems likely that whichever coins we buy or sell anonymously from non-KYC sources were at some point in time purchased from KYC sources? And if so, those exchanging such coins might risk persecution and/or prosecution under whatever oppressive state regulations might currently exist or ever in the future be imposed, when and wherever those coins re-emerge into the fiat marketplace. I suspect that chain analysis and government data tracking will only intensify with evolving technology.
Until Bitcoin becomes universally accepted for all forms of commerce and trade without encumbrances from government regulations, KYC compliance, taxation and surveillance will probably remain. 😐