The former Tottenham Hotspur star hit his first hat-trick for the Spanish giants since his £86m move to the Santiago Bernabeu in September, bagging three goals and an assist in the 4-0 victory over Real Valladolid on Saturday, with Karim Benzema scoring the other.
However, Butragueno claims that there is still more to come from the Welshman as he familiarises himself with his teammates.
Speaking to reporters after the win, the Blancos legend said: "Bale's three goals were very important for his morale and confidence, while he demonstrated great technique to assist Benzema for our second goal.
"He has to still get to know his peers and their movements around him, but I have high hopes for him, for he will surely improve more."
Nevertheless, Cristiano Ronaldo missed the rout with a thigh injury and, despite Bale grabbing the headlines in the Portuguese's absence, Butragueno believes the 28-year-old is still the main man at the Bernabeu.
He added: "It is great to know we have other fantastic players but I hope Cristiano [Ronaldo] can come back as soon as possible because he's the best."
Bale took his total for the season in Real Madrid colours to six - two in the Champions League - and five assists.