Problem with encryption

I have set up all of my functionality to add a user to my external database and I am hung up on the encryption.

In my Gravity Forms hook I am calling:

$pw = password_hash($entry[‘7’], PASSWORD_BCRYPT);

And getting an entry in my database that looks like a hashed password. When I turn on BCRYPT in External Login, I cannot login with this newly created account. I CAN login with a different account that uses a clear password.

I am at a loss as to how to troubleshoot this one.