The 50-year-old congratulated los Blancos' city rivals for ending their 14-year derby hoodoo courtesy of a solitary strike from in-form forward Diego Costa
A lone strike from Diego Costa on the 11th minute proved sufficient to earn los Rojiblancos a first Liga win over their rivals since 1999.
"I have earned it," Butragueno told Canal Plus. "They've been better. Sometimes you win and sometimes you lose, so you have to congratulate them.
"They scored on their first chance and from there we felt very uncomfortable. We had a few occasions where we could've drawn level and enjoyed some pride but, ultimately, they were better.
"Losing at home is very bad news. We have quality players and the team was not inspired. The team can play better, that's for sure."
Butragueno also praised Atletico boss Diego Simeone for a constructing a side that he feels must now be considered as genuine title contenders.
"They are a great team," the former Spain international enhused. "Since joining, Simeone has done a fantastic job, and has made the team complete and solid in all aspects of the game.
"There is so much time and many months ahead. Atletico has a very solid block, very competitive and very hard to beat. Now they have proved it."
Atletico are level on points at the top of the Liga standings with Barcelona, who have also won their first seven games of the new season.