The term "holy people" was first given to the ancient Israelites when God inaugurated them as a nation back in the wilderness. "For thou art an holy people unto the Lord thy God: the Lord thy God hath chosen thee to be a special people unto himself, above all people that are upon the face of the earth." (Deut. 7:6).
Of course, we know very well that ancient Israel repeatedly disobeyed their God and had many judgments passed upon them. They served as a temporary microcosm of God choosing a "holy people" for Himself as children of faith - the true "Israel of God" which actually has been the case from creation forward. But as a temporary example, God granted the ethnic people of Israel this title of being "the holy people".
Daniel was given the prophecies which concerned the fate of his own ethnic people of Israel, right up to the time when God would "shatter the power of the holy people" during those "time, times, and half a time" (Daniel 12:7). This eventual destruction of this formerly "holy people" occurred in the AD 66-70 period (those 3-1/2 years predicted in Daniel 12:7, which you included above). This was not the destruction of the true "Israel of God", because that is a kingdom which will never be destroyed. God promised that even the gates of hell could not withstand the progress of this kingdom's growth. It's power will NEVER be "shattered", as that of natural ethnic Israel's "holy people" was shattered back in AD 70.
The holy people are the people who do not worship the little horn ,it's image or recieve it's mark.The are killed for thier testimony of jesus.They shall live and reign with Christ for 1000 years.
Exodus 19:6
you will be for me a kingdom of priests and a holy nation.’ These are the words you are to speak to the Israelites.”
Revelation 20:6
6 Blessed and holy is he that hath part in the first resurrection: on such the second death hath no power, but they shall be priests of God and of Christ, and shall reign with him a thousand years.
The little horn in Daniel 7-8 is the beast which came out of the sea in revelation 13.Both testify of the same government.
Daniel 7
25 And he shall speak great words against the most High, and shall wear out the saints of the most High, and think to change times and laws: and they shall be given into his hand until a time and times and the dividing of time.
Revelation 13
5 And there was given unto him a mouth speaking great things and blasphemies; and power was given unto him to continue forty and two months.
6 And he opened his mouth in blasphemy against God, to blaspheme his name, and his tabernacle, and them that dwell in heaven.
7 And it was given unto him to make war with the saints, and to overcome them: and power was given him over all kindreds, and tongues, and nations.
I learned long ago that this little horn is the Israeli government.Next year after Trump is reelected,he will give Israel a host.The second beast of revelation 13.Then the holy people (church)in Israel will be prisoned and killed for terrifying of Christ and for warning he israelis to not worship the beast.
Daniel 11:33-35
“Wise leaders will give instruction to many, but these teachers will die by fire and sword, or they will be jailed and robbed.
During these persecutions, little help will arrive, and many who join them will not be sincere.
And some of the wise will fall victim to persecution. In this way, they will be refined and cleansed and made pure until the time of the end, for the appointed time is still to come.
As Daniel 7:25 and Revelation 13:5 says,
42 months=a time,times and a half.