To dream of a butter knife represents conflict with an issue that embarrasses you, or makes you look like you aren't powerful. It reflects impotence to compete, put up a serious fight, or intimidate. Passive gentle conflict. Not serious about any thing dangerous. Conflict that isn't serious because pleasure overrides it. Problems breaking up a relationship because too much sex is involved.
Example: A young woman dreamed of holding a butter knife. In waking life she was having fights with her boyfriend and difficulty breaking up with him or saying mean things to him because the sexual relationship was too good.