"It left me wondering why, if Leeds could play like that, they were in so much trouble. But it was the same problem at Wolves, we just didn't have the quality.
"In any division you have to win your home games, and it helps if teams are scared of coming to play you."
The defender's decision to accept Kevin Blackwell's offer of a two-year deal at Leeds was a vote of confidence for the Leeds boss.
Butler captained Wolves last season and has also worn the armband during his time at Sunderland, and United's capture of a natural leader is now crucial with Dominic Matteo expected to leave soon.
Butler added: "I was attracted by the name of Leeds United, it's as simple as that. I've had three-and-a-half good years at Wolves, but they offered me a one-year contract and that's not long enough at this stage of my career.
"I'm coming into my prime and playing some of the best football of my life, I felt I deserved a longer deal. As soon as my agent phoned and told me Leeds United were interested, I said 'I'm off'. Leaving Wolves was a hard decision, but it wasn't difficult saying yes to Kevin.
"I came back in the middle of my summer holiday to have the medical," concluded Butler. "We were away in Florida with the kids, but I said to my wife that I had to get back and sign. I wasn't going to risk something going wrong and Leeds looking elsewhere. It was too good an opportunity to miss."