A Besart Berisha hat-trick and Archie Thompson's brace saw Victory come from behind twice to demolish their local rivals at a packed Etihad Stadium, another statement of intent to the other championship contenders.
But despite revelling in a job well done, Muscat refused to be drawn on the issue of Victory's silverware credentials.
"It's the least of my concerns at the moment," he said.
"Sydney won away at Brisbane last night. There's a lot of work to be done.
When pressed on the issue and asked if there was any reason Victory should not be treated as one of the early favourites, he said: "No, there's no reason."
"I don't think there's any reason after three games that anyone can't win. Are you writing Brisbane off? Are you writing teams off?
"We're certainly not worried about anyone else."
Muscat was disappointed to concede two goals from set pieces in the first half of the derby, but knows his players will be only to eager to correct their mistakes ahead of Wednesday's FFA Cup quarter-final away to Perth Glory.
"There is room for improvement," he said.
"Severe room for improvement in certain areas. Analysing something and then finding a solution - the hardest thing is applying it.
"We'll go away and analyse that game and we'll find ways we can get better. From that performance tonight, we'll find ways.
"I'll sit there till I find some ways that'll ask more out of that group. Because they're hungry as all hell and they want the opportunity to get better. I've got to find where we get better."
Victory are likely to make several changes to their starting XI for the last-eight clash at nib Stadium, although Muscat insisted he is determined to guide his team into the semi-finals, regardless of who lines up from kick-off in Western Australia.
But despite revelling in a job well done, Muscat refused to be drawn on the issue of Victory's silverware credentials.
"It's the least of my concerns at the moment," he said.
"Sydney won away at Brisbane last night. There's a lot of work to be done.
When pressed on the issue and asked if there was any reason Victory should not be treated as one of the early favourites, he said: "No, there's no reason."
"I don't think there's any reason after three games that anyone can't win. Are you writing Brisbane off? Are you writing teams off?
"We're certainly not worried about anyone else."
Muscat was disappointed to concede two goals from set pieces in the first half of the derby, but knows his players will be only to eager to correct their mistakes ahead of Wednesday's FFA Cup quarter-final away to Perth Glory.
"There is room for improvement," he said.
"Severe room for improvement in certain areas. Analysing something and then finding a solution - the hardest thing is applying it.
"We'll go away and analyse that game and we'll find ways we can get better. From that performance tonight, we'll find ways.
"I'll sit there till I find some ways that'll ask more out of that group. Because they're hungry as all hell and they want the opportunity to get better. I've got to find where we get better."
Victory are likely to make several changes to their starting XI for the last-eight clash at nib Stadium, although Muscat insisted he is determined to guide his team into the semi-finals, regardless of who lines up from kick-off in Western Australia.