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That is your starter/alternator lead. Known issue, happened to me. The dry solder basically rots away with heat, corrosion and vibration then either snaps or falls out. I bet if you gave it a little tug it will come out.
Two options - buy a new cable from BMW but you will have to take your intake manifold off to fit it.
Or chop the cable about 20cm from where it bolts to the firewall, get some suitable automotive battery cable, heatshrink and an eyelet, crimp the new cable onto the old one and crimp the eyelet on. If you cant find a suitable joiner, just use some 10mm copper pipe.
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